19 Nov 2018

Parliament on November 17 turned down a motion by Gaborone Central MP, Dr Phenyo Butale, which requested for consideration of options to cushion fuel prices.

Presenting the motion, which read; “That this Honourable House consider options for cushioning fuel prices and their frequency and for Parliament to consider authorising funding against these price hikes,” Dr Butale argued that the motion sought to ensure that MPs engage in a process to find solution to an immediate problem of fuel prices that are on the rise.

He said the rate at which fuel prices escalate would have a negative effect on inflation and on the prices of goods, which in turn would make life difficult for an ordinary person.

Dr Butale however commended government for establishing the National Petroleum Fund (NPF) from which petroleum retailers are paid the difference between the administered and prevailing fuel prices.

He therefore stated that the NPF had been recovering for the past five years, saying that was how country accumulated money in the fund.

He said because of the NPF’s current state, Batswana were going to suffer frequent price increase in petroleum products, adding that there was an expected increase in December. 

This, he said called for a more sustainable solution to be found immediately and that there should be emergency funding.

Dr Butale was of the view that Batswana had not been prepared for the eventuality of charging them fuel prices at market rate, arguing that there was need to cushion Batswana in a manner that would not create a crisis.

He suggested that money could be taken from government coffers such as the Road Fund Levy (RFL), and/or the Alcohol Levy, to cushion Batswana from the price hikes. 

“The issue here is that we have not managed this instrument well, which is why we have to come back here and come up with mechanisms of  ensuring that we do not punish people who have no role to play in this mismanagement,” he stated.

Minister of Mineral Resources, Green Technology and Energy Security, Mr Eric Molale opposed the motion saying, ‘it is not urgent and redundant, what Dr Butale is talking about is already in place.

He pointed out that Batswana are not suppliers of oil, but reactors and he argued that as pump prices had been going up worldwide, Botswana prices had remained the same and lowest. 

He said prices had been increasing and would further increase in future, adding that the rate of increase in other regions was higher. 

He said Botswana consumers had been cushioned, and therefore dismissed that there was neither a crisis nor an emergency situation.

In support of the motion, MP for Tati East Mr Samson Guma stated the increase in fuel had an impact on inflation, adding that the worst thing was that it cut across the economic spectrum; hence everyone would be affected.

MP Guma therefore said fellow parliamentarians needed to know that Botswana was faced with a reality on the ground that needed to be dealt with.

He said fuel price increase was going to hit hard on the market and the country at large. 

“There is a huge problem that all of us need to address. We need to deal with this matter in a sober manner by asking experts to unpack it for us. Ask the right questions and come up with the  recommendations that assist Batswana out there,”  he stated.

Thirteen MPs voted for the motion while 19 voted against it. ENDS