Banners
Banners

Latest News

Twenty-three-year-old Tsaone Mpayang is a photographer and travel mana...
Sadi Dikgaka songmaker, Thebe Rabogatsu also known as Young Prince in ...
It is rare to find young people showing interest in traditional poetry...
Now approaching its third year, the MultiChoice Talent Factory (MTF) A...
Banners
Banners

Fuel prices could rise again by P1.00

MBONGENI MGUNI
Higher and higher: Pressure is building on fuel prices
The local economy could soon be hit with a one pula increase in fuel pump prices, the third increase of the year and one which would follow the P1 across the board rise effected on March 31.

This week, Botswana Energy Regulatory Authority (BERA) revealed that the local oil sector was currently in a state of under-recovery, where the price paid at the pump is lower than the price paid across borders as well as the costs involved in importing the fuel.

According to statistics shared by BERA, the under-recovery across the different fuels in the country currently ranges from 77 thebe per litre to P1.10. Illuminating paraffin is currently being sold at a P1.58 discount per litre.

Pump prices rose on February 28 by between 52 and 58 thebe, before jumping again on March 31 by one pula across the board in response to the introduction of the higher fuel levy. The energy regulator said the February 28 price increase was due to rising international crude oil prices, but this week added that the previously stated plans to adjust pump prices on a monthly basis would not be presently possible. “The monthly adjustment of pump prices is a challenge as BERA recommends to the minister for adjustment as per the BERA Act.

“The decision to adjust pump prices is taken at a high level and sometimes there are delays which may make it difficult to do it on a monthly basis.

“The fact of the matter is that adjustments are made as and when international oil prices change,” the authority said in emailed responses to

Banners
BusinessWeek.

While the National Petroleum Fund (NPF) is supposed to provide a buffer against deep fuel price increases, the Fund has been depleted due to years of under-recovery dating back to 2018, as well as a highly-publicised saga involving the diversion of P250 million from the Fund. In each litre of fuel sold at the pumps, 13.5 thebe is remitted to the NPF to subsidise oil companies for the difference between the costs they incur in importing fuel and the actual pump prices.

Analysts, however, told BusinessWeek the trend in global crude prices suggested BERA may not have to immediately raise fuel prices to the level indicated by the under-recovery. Crude oil prices in recent months have been driven by optimism around the global economy due to higher COVID-19 vaccination rates.

“The escalating cases in India, however, and other concerns around vaccination in Europe and South America is dampening that optimism to some extent,” an industry analyst told BusinessWeek.

“In addition, the oil producers have committed to upping their production, while the US, which is the biggest consumer of oil, has indicated that it has higher inventories of the commodity.”

Should pump prices rise to erase the under-recovery, the increase will be yet another shock to the economy and consumers who are struggling with higher VAT, a new sugar tax and a wave of greater administered prices.



Business

Banners
Banners ?>

Selefu

Out!

Latest Frontpages

Todays Paper Todays Paper Todays Paper Todays Paper Todays Paper Todays Paper
Banners
Adana Escort Adıyaman Escort Afyon Escort Ağrı Escort Aksaray Escort Amasya Escort Ankara Escort Antalya Escort Antep Escort Ardahan Escort Artvin Escort Aydın Escort Balıkesir Escort Bartın Escort Batman Escort Bayburt Escort Bilecik Escort Bingöl Escort Bitlis Escort Bolu Escort Burdur Escort Bursa Escort Çanakkale Escort Çankırı Escort Çorum Escort Denizli Escort Diyarbakır Escort Düzce Escort Edirne Escort Erzincan Escort Elazığ Escort Erzurum Escort Eskişehir Escort Giresun Escort Gümüşhane Escort Hakkari Escort Hatay Escort Iğdır Escort Isparta Escort İskenderun Escort İstanbul Escort İzmir Escort İzmit Escort Karabük Escort Karaman Escort Kars Escort Kastamonu Escort Kayseri Escort Kıbrıs Escort Kırıkkale Escort Kırklareli Escort Kırşehir Escort Kilis Escort Kocaeli Escort Konya Escort Kütahya Escort Malatya Escort Manisa Escort Maraş Escort Mardin Escort Mersin Escort Muğla Escort Muş Escort Nevşehir Escort Niğde Escort Ordu Escort Osmaniye Escort Rize Escort Sakarya Escort Samsun Escort Siirt Escort Sinop Escort Sivas Escort Şırnak Escort Tekirdağ Escort Tokat Escort Trabzon Escort Tunceli Escort Urfa Escort Uşak Escort Van Escort Yalova Escort Yozgat Escort Zonguldak Escort Alaçatı Escort Aliağa Escort Alsancak Escort Bornova Escort Buca Escort Çeşme Escort Çiğli Escort Gaziemir Escort Karşıyaka Escort fethiye escort iskenderun escort iskenderun escort iskenderun escort iskenderun escort iskenderun escort