Brace for more fuel price pain

As a nationwide strike by commuter transporters entered its third day on Thursday, the Botswana Energy Regulatory Authority (BERA) warned that the average P1.92 increase in petrol and diesel pump prices effected last week was still below the level required for local fuel suppliers to break even.

Fuel prices have risen seven times since January 2021 and a litre of ULP 93 petrol that cost P9.60 in May last year in Gaborone, now costs P15.24, an increase of nearly 60 percent. Under-recovery, or the situation where pump prices are below actual costs incurred by oil companies in importing fuel has stubbornly persisted throughout the hikes, as international crude prices have escalated, while the troubled National Petroleum Fund (NPF) has not been able to perform its role of providing a subsidy buffer for consumers.