05 Oct 2016

 Principal energy officer in the Department of Energy Mr Merapelo Tautona says fuel pricing in Botswana differs from other countries due to the industry being cushioned by the National Petroleum Fund (NPF).
Addressing the media on Tuesday he stated that Botswana together with other SACU states used the same pricing methodology referred to as basic fuel pricing of which thereafter every country adds a domestic cost component.
Mr Tautona said fuel prices in Botswana are reviewed monthly to look at unit rates, the NPF position and the trend of crude oil prices which then determines the pricing.
He highlighted that the fund was used to cushion the retail prices as government doesn’t give out money to cushion prices.
He said the sum of 13.5 thebe per litre was charged from the sale of diesel and petrol which then goes towards the fund.
He stated that in South Africa prices are administered through an autonomous body unlike in Botswana where it goes through the department of energy, the ministry and even at a political level. Therefore he noted that unlike in South Africa price adjustments take time to effect in Botswana due to the NPF as they have to look at the position of the fund before adjusting prices.
He said the fund had benefited Batswana positively as in some instances fuel prices increased in some countries while it remained low in Botswana which helped in managing inflation.
Mr Tautona said profit margins were regulated for fuel companies in Botswana and all retailers who own filling stations.
He highlighted that the passing of the Botswana Energy Regulator Authority Bill in Parliament in August would take care of customers and allow private players to compete in the energy market while they are being monitored by this authority.
The programme development officer in the Department of Energy Mr Baruti Regoeng said currently the NPF had a total of P600 million which he said was sustainable.
He highlighted that the fuel industry was volatile with prices being unpredictable leading to depletion of funds however noting that the fund had never run out of money. ENDS