BERA moves to regulate LPG pricing
Mbongeni Mguni | Monday May 18, 2026 06:00
The country's annual usage of the gas has soared above 21 kilogrammes, as more rural consumers switch from firewood. However, the sector has been unregulated in terms of pricing and with just five importers responsible for all the products coming into the country, consumers have complained of arbitrary pricing and possible collusion.
BERA director of Economic Regulations, Batsumi Rankokwane, told BusinessWeek the regulator has developed Terms of Reference for a service provider who will help develop the pricing framework.
He noted that the LPG sector is concentrated in structure, with a small number of importers. Botswana does not produce LPG gas, although at least two miners are at advanced stages of developing related gases.
The industry’s structure also has overlaps where some importers are wholesalers and also double-up as retailers. Some you find that the importer is also a wholesaler and a retailer. Others
“The risk of collusion can arise and that’s why you need market regulation, especially around pricing,” he said during an editors’ update arranged by the Authority.
Rankokwane explained that the journey towards price regulation had started years ago, with an analysis on the structure of the industry.
“You don’t want to introduce price regulation in a market that’s not structured,” he told BusinessWeek. “We started with an LPG market study to understand how it is structured and how it operates. “That led us to the second task which was to develop the LPG regulations under the BERA Act to govern the operations of the industry. “Now the third step, because we have defined the structure, is why we see the need to introduce price regulation.”
According to BERA’s study from 2021, LPG prices of gas were largely influenced by proximity of the district or area to main supply centres. As such, prices in Kweneng, Central, Kgatleng, South East and North East were generally lower, than Kgalagadi, Gantsi, North West and Chobe, because of the proximity of these areas to gas wholesale and distribution depots as well as an expanded network of retailers.
The regulator found that with the exception of Kweneng and Kgatleng in the 9kg, 14kg and 19kg gas cylinders range, all other districts had abnormal pricing. All districts also had abnormal pricing in the 48 kilogramme category. The Authority categorised prices as “abnormal” where the variance in pricing was above the mean.
“Abnormal pricing could result from several factors such as over-pricing and a small number of service providers resulting in limited choices for consumers,” BERA’s study reads. “These were not fully investigated but it was certainly an area that should be addressed through market research going forward.”
BERA’s study found that an analysis of LPG companies shareholding structures and directorships, market shares and business concentration, revealed the existence of an oligopolistic market with its “inherent opportunities for uncompetitive behaviours and predatory pricing practices”.
Rankokwane told BusinessWeek that the local industry was open to price regulation.
“When we were doing the pricing framework for petrol and diesel, we saw the need to work with the industry and we created what is called the Commercial Committee, which has representation from the industry. “That committee was very important in terms of sharing insights because they are the ones on the ground, and have the data. “This is the same approach we are going to be employing in the development of the LPG pricing framework whereby we work with the industry to make sure that whatever model we come up with, at the end of the day, it is able to be a representative model,” he said.