Botswana licks wounds as P4bn lost to fuel smuggling
Lesedi Mkhutshwa | Wednesday March 25, 2026 06:00
According to the Botswana Energy Regulatory Authority (BERA) Chief Executive Officer, Dr Never Tshabang, the country is feeling the pinch, with seized fuel stocks and lost levy revenues impacting development initiatives.
When addressing the recent Ramokgwebana, Moroka, Jackalas 1, and Kgari (RAMOJAKGA) crime prevention seminar, Tshabang said that between 2019 and 2025, authorities confiscated around 800,000 litres of fuel, resulting in a P2.7 million levy loss.
He also warned that filling stations caught engaging in the illicit trade will face closure, emphasising that exporting petrol without a permit is illegal.
'This levy is supposed to help with the country’s development,' he stated.
He said that fuel smuggling and illegal sales cost Botswana P4 billion.
According to Tshabang, the sum can cover the whole budget of the ministry.
In order to stop the crimes, he urged stakeholder engagement.
He maintained that the unauthorised movement of petrol is illegal and that in order to distribute fuel, one must have an export permission.
He indicated that contravening the BERA Act can land one a jail term of five years and a P30,000 fine or both.
Tshabang stated that Botswana's national strategic reserve still has over nine days, and Botswana Oil Limited fuel can still go for about a month.
Additionally, the BERA CEO said that prices have increased from suppliers due to the ongoing wars in the Middle East.
He said that a third of the world's fuel comes from the same countries.
He also suggested that it was high time the country considered the use of electric vehicles.
According to the latest BERA press release on the update on national fuel supply in light of global markets, it indicates that Botswana’s fuel supply position remains stable and sufficient to meet current national demand as of March 20, 2026.
Furthermore, the statement reads that a total volume of fuel stocks held by importers and wholesalers (including product in transit) stands at 65 million litres, providing 20.8 days of national fuel cover.
These volumes comprise 41.4 million litres of diesel and 23.7 million litres of petrol. Furthermore, fuel importers have placed orders of about 20 million litres of petrol and 24 million litres of diesel.
Fuel importers have provided assurance that the supply for the month of March 2026 remains stable.
The statement further indicates that although supply appears to be stable for March 2026, there is, however, greater uncertainty and anxiety with regards to the supply outlook going into April 2026 owing to escalating premiums as traders have now resorted to spot pricing.
Therefore, the Authority is currently engaging with oil companies to see how best to deal with additional costs of importation within the current pricing structure.
“The ongoing global geopolitical tensions, particularly in the Middle East, have significantly impacted international oil markets. Brent crude oil prices increased by 38% between March 1 and 18, 2026. These developments have been driven by escalating supply concerns and maritime transport costs,” it stated.
The Authority will continue to closely monitor developments and manage any emerging supply risks in collaboration with government and industry stakeholders.