Fuel up by 20thebe

Pump prices of fuel went up at midnight PIC: MORERI SEJAKGOMO
Pump prices of fuel went up at midnight PIC: MORERI SEJAKGOMO

The rise in international crude oil prices and refined product prices have compelled government to increase retail pump prices for petrol, diesel and illuminating paraffin effective today.

Economic analyst, Moemedi Mosele said the increase in retail pump prices has been expected due to the steady rise of global oil prices throughout the year.

“Since OPEC {the Organisation of Petroleum Exporting Countries} announced that it would trim production by 1.2 million barrels a day to 32.5 million, it was clear that global oil prices would rise, as they have been hovering above $50 per barrel throughout the year,” he said.

He said this has put pressure on government to increase the fuel prices, adding that the introduction of the fuel taxearly this year has also contributed to the increase since government has been subsidising and eating on the reserves.

As at yesterday, the price of Brent crude oil was $60 per barrel up from just under $50 at the start of the year.

A press release from the Botswana Energy Regulatory Authority (BERA) stated that retail pump prices for all petrol grades (unleaded petrol 93 and 95) would be increased by 20 thebe per litre.

Retail pump prices for all diesel grades (diesel 500 parts per million (ppm) and 50ppm) will be increased by 20 thebe per litre, and retail pump price for illuminating paraffin will be increased by 20 thebe per litre.

According to BERA, the increasing average crude oil prices have largely been influenced by the OPEC, whose 14 members pump a third of the world’s oil, to restrict the supply of oil into international markets thereby triggering demand to be higher than supplies.

The regulator said it would continue to closely monitor the development of petroleum product prices in both regional and international markets to ensure optimal price control to both the general public and the fuel supply industry.

“The public is encouraged to continue practising fuel conservation measures, to save fuel and reduce the effects of high fuel costs and environmental impacts,” BERA stated.

The last time that government adjusted fuel prices was March this year when retail pump prices for petrol and diesel were increased by 20 thebe and 25 thebe per litre respectively.

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