The hike follows another increase in November last year that saw petrol prices jumping by 50t: diesel by 51t and paraffin by 40t. However, the Permanent Secretary in the Ministry of Minerals, Energy and Water Resources, Boikobo Paya, defended the increase in a statement on Saturday, saying the current margin of increase is far less than what the prices could have been adjusted or increased to, adding that the local pump prices for petrol, diesel and paraffin will continue to be below real pump prices by an estimated 44.41 thebe, 41.72 thebe and P1.83 per litre respectively after the latest increase.
Paya also says a comparison of the Botswana product pump prices to the regional prices at Southern African Customs Union (SACU) level shows that Botswana prices continue to be the lowest in the region even after this adjustment. The Permanent Secretary says local petroleum product retail pump prices continued to under recover since last month, putting the National Petroleum Fund (NPF) under severe pressure as it has been necessary for the government to compensate the oil industry for some of the losses made during the period.
