Mmegi

High pressure mounts on fuel prices

Under pressure: Fuel prices are expected to rise in the very near future PIC: KENNEDY RAMOKONE
Under pressure: Fuel prices are expected to rise in the very near future PIC: KENNEDY RAMOKONE

The Middle East crisis is piling pressure on local retail pump prices, with industry insiders estimating that petrol is presently about P3 and P4 below breakeven and diesel as much as P5 below par, even before the month ends.

The Botswana Energy Regulatory Authority (BERA) maintains a slate, which is a formula calculating 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 whether pump prices increase or decrease.

Editor's Comment
Batswana need to do better to stop FMD

It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...

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