Engen profits drop by P83m after oil import shift :: Mmegi Online

Regulatory changes granting a parastatal the right to import 90% of Botswana’s petroleum products, have eroded P83 million from Engen Botswana’s profit before tax, a development the petroleum retailer says poses a major risk to its business.

Engen which operates 71 service or “filling stations” across Botswana, experienced sharp pressures on their margins in the full year 2024 with their pretax profits declining from P193.9 million in 2023 to P111.0 million in 2024, an overall decline of 42%.

In the group’s latest annual report, industry insiders said the steep decline was due to policy changes that terminated fuel import licenses giving a 90% import mandate to government-owned Botswana Oil. This has since meant that retailers like Engen are now forced to procure petroleum products such as Unleaded 93 and Diesel from BotsOil exclusively.

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