06 Sep 2015

Motorists especially public transport operators breathed a sigh of relief following reductions in fuel prices on Saturday (September 5). A press release from the Ministry of Minerals, Energy and Water Resources states that retail pump prices of all petrol grades decreased by 15 thebe per litre while prices of all diesel grades went down by 40 thebe per litre.

Retail pump prices for illuminating paraffin decreased by 40 thebe per litre. Again, retail and wholesale margins have been increased by 2.6 and 2.2 thebe per litre respectively. 

The ministry states that price adjustments are caused by a decrease in crude oil prices internationally.

Crude oil prices have been declining since June this year.The current decrease has been attributed to concerns of over supply resulting from an increase in the US stockpiles as well as the slowdown of the Chinese economy. International crude oil prices averaged US$46.58 in August.

The last price adjustment was effected on February 14 this year when prices of petrol, diesel and illuminating paraffin were decreased by 104, 103, 103, 107 and 65 thebe per litre for ULP 93, ULP 95, Diesel 500 ppm, Diesel 50 ppm and illuminating paraffin respectively.

Analysts say they expect the national inflation rate to fall towards the lower end of the Bank of Botswana objective range. Ends