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BERA reviews fuel pricing formula

Under review: The formula used to calculate fuel prices is being adjusted PIC: MORERI SEJAKGOMO
Under review: The formula used to calculate fuel prices is being adjusted PIC: MORERI SEJAKGOMO

The Botswana Energy Regulatory Authority (BERA) will appoint a consultant this month to review the formula being used to calculate fuel prices in the country, in order to “achieve cost reflectivity”.

Known more commonly as the “slate,” the formula is a calculation of the costs involved in supplying and distributing various forms of fuel within the country. Every month, BERA looks at the movements of the various factors in the slate, to gauge whether pump prices are “under-recovering” or “over-recovering”. Both terms refer to whether pump prices are above or below the costs involved in bringing and distributing the fuel throughout the country, which determines pump prices increases or reductions.

BERA caretaker CEO, Grace Tabengwa, said the review of the slate would be aimed at achieving cost reflectivity.


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