Fuel price discounting is not illegal – BERA
Spira Tlhankane | Tuesday June 30, 2026 13:29
The authority was responding to concerns raised by the Botswana Petroleum Retailers Association (BOPRA), which recently indicated that the practice is hurting smaller independent operators.
In response to questions from The Monitor, BERA said it regulates the maximum retail pump price of petroleum products, meaning filling stations are prohibited from charging above the regulated price but are permitted to sell fuel at lower prices.
'Generally, it would not be illegal for filling stations to sell at a price below the regulated pump price. Conversely, it would be illegal for filling stations to charge above the regulated pump price,' the Authority Chief Executive Officer Dr Never Tshabang stated in a written response.
The clarification comes after BOPRA warned that fuel price discounting is disadvantaging compliant retailers, particularly smaller independent operators, by shifting sales volumes to larger competitors able to absorb lower margins. BERA acknowledged that discounting exists in the market but attributed it largely to differences in business models within the industry.
“It is important to highlight that there are two categories of retail operators. The first category is operators that are franchisees of international oil companies, whilst the other category is Batswana who hold both import and retail licenses. Basically, the latter plays both at importation/wholesale and retail; as a result, this category would normally enjoy both wholesale and retail margins and be able to give discounts on fuel whilst the former does not have that much latitude,” he said.
Tshabang added that the law currently does not prohibit citizens from operating in a vertically integrated setup in the petroleum industry; therefore, it is without doubt that price is a tool used in competition and that consumers naturally gravitate towards filling stations offering lower prices.
“The authority has observed that some retailers offer discounts or set lower prices than their competitors. Consequently, consumers would be more inclined to purchase fuel from these filling stations that charge a lower price. It is also worth noting that over the years, there has been an increase in the number of filling stations around the country. Whilst a lot of filling stations have been opening around the country, consumption of petroleum products has not really been increasing. Consequently, individual retail sales volumes have been declining as retailers share the same customers and volumes,” he also noted.
Regarding compliance monitoring, BERA said it routinely conducts inspections, spot checks and random compliance monitoring exercises to ensure retailers do not charge above the regulated maximum pump price.
“All of these have different procedures; however, at each of the inspections, the authority confirms that retailers do not offer prices above the regulated pump price. Further, after every price adjustment, the authority conducts random spot checks specifically for adherence to regulated pump prices.”
Responding to BOPRA's claims that the authority has failed to engage meaningfully on dealer margins, BERA disputed the assertion, saying discussions with the association have been ongoing since last year.
“The association requested a review of the dealer margin and the authority embarked on an exercise on the same. The association was requested to submit data which would inform the review exercise. The authority then carried out an interim review of the margin, and it was increased from 92.264 thebe per litre to P1.09 per litre effective February 1, 2026. The association was further informed that a detailed review of the margin would follow suit. Currently, the authority is in the process of procuring a consultant for this exercise,” Dr Tshabang said.
The authority says it has been engaging with the industry on a wide spectrum of issues across the value chain, pertaining to the importation, supply, distribution, and retailing of petroleum products. It noted that discounting at the pump was one of the issues and that the BERA Act is currently under review to address industry-wide concerns, including pricing.