Slight relief as fuel prices drop
Mbongeni Mguni | Monday April 20, 2020 13:06
In a statement today, the Botswana Energy Regulatory Authority (BERA) said retail prices of petrol would drop by 13 thebe, diesel 10 thebe and paraffin 20 thebe.
The reduction is the first review of fuel prices since twin increases in October and Novemebr 2018.
'The decrease is influenced by the general decline in international oil prices,' BERA CEO, Rose Seretse said.
'International crude oil prices have been going down mainly as a result of reduced global demand concerns driven mainly by the slowdown of the global economy.'
Global crude prices also came under downward pressure recently after a price war broke out between major producers, Saudi Arabia and Russia.
The International Monetary Fund expects the global economy to shrink by at least three percent this year due to the effects of the Coronavirus pandemic.
Locally, the IMF expects Botswana's economy to contract by 5.4% this year, the second worst annual performance on record beaten only by the 2009 recession.
In its range of economic responses, government hopes the fuel price reduction will support the economy's recovery from the Coronavirus' impact.