Parley Rejects Butale's Fuel Motion
Goitsemodimo Kaelo | Monday November 19, 2018 13:27
Butale’s motion followed the recent fuel hikes within a space of six weeks and the envisaged one in December. However, Parliament rejected the motion on the basis that the government is already subsidising fuel prices for Batswana.
Botswana Democratic Party (BDP) MPs voted against the motion after the Vice President Slumber Tsogwane had called for division following an announcement by the Deputy Speaker Kagiso Molatlhegi that the motion has passed. Nineteen (19) MPs voted against the motion while only 13 voted for it. When presenting the motion, Butale said the frequent fuel price hikes would hit hard on ordinary Batswana, having a negative effect on inflation.
He said this would create a burden on citizens as prices for consumables are set to increase. He stated that this is a crisis situation, which requires Parliamentarians to think of ways of assisting Batswana.
“We all know that when fuel prices increase and escalate at the rate at which they are escalating, that would have a negative effect on inflation. It would have a negative effect on the prices of everything,” he said.
He said the idea to establish the National Petroleum Fund (NPF) was a noble one, but its depletion means there is nothing to cushion Batswana against the frequent fuel price hikes. Butale indicated that the hikes are a way of doing away with the under recoveries, which is not sustainable.
“We are just lucky that crude oil prices have been decreasing sharply in November. Otherwise we would create more pressure to the government to increase next year, which would create more problems to the inflation and economy,” he added.
He recommended that government should consider taking 30 thebe from the 90 thebe paid to Road Levy to increase the NPF. This, he said, would raise over P5 billion in five years, which would be enough to cushion Batswana against these hikes. He said Batswana have not been prepared to pay fuel at market prices.
However, the minister of Mineral Resources, Green Technology and Energy Security Eric Molale opposed the motion saying it is redundant.
Molale said the government is already cushioning Batswana against the price hikes hence the government is currently owing the multinationals petroleum companies.
He said Botswana has no control over the pricing of fuel as it is determined by outside forces. He said the country is doing well in the region compared to other countries.
“The rest of the region were increasing on monthly basis while we increased after six months in 2017 hence the under recoveries,” said Molale.
It is said that petrol should cost P1.47 more per litre and diesel P2.25 more than current prices and government has no choice in coming months, but to keep adjusting pump prices towards these levels.