BY Mayowa Tijani
The Republic of Botswana has raised the retail pump prices for petrol, diesel and illuminating paraffin for the second time in the space of a month.
In a statement on Wednesday, the Botswana Energy Regulatory Authority (BERA) said the retail pump prices for petrol, diesel, and illuminating paraffin will all be increased from 00:01 on Thursday, November 15.
The country had increased the prices on October 15, 2018 — only 30 days earlier.
In the recent release, the government said the retail pump prices of petrol, diesel, and illuminating paraffin will be increased by 33 thebe (3.3 cents), 31 thebe (3.1 cents) and 36 thebe (3.6 cents) per litre respectively.
The country said the actions had to be taken to stem the growth of under-recoveries in the country.
“The increase in retail pump prices is necessitated by the growing under-recoveries since September 2017,” the statement read.
“The actual cost of importing petroleum products into Botswana has been higher than the regulated price. Hence there is need to align the local retail pump prices with international trends.”
The government went on to explain to the citizens, why the decision had to be taken at this time, breaking down the realities in the oil market.
“The volatility of the crude oil price is mainly influenced by the following five key factors; • Changes in the global supply and demand of oil • Crude oil production levels and refining capacities
“OPEC strategies for maintaining certain levels of production quotas to limit supply • Geopolitics – especially the Middle East • Oil being used as a financial commodity by Speculators”
The government says it “will continue to closely monitor the prices of petroleum products in both regional and international markets and make price adjustments as necessary”.
Nigeria has employed the same model in regulating the pump price of petroleum products in the country, recording under-recoveries in billions of naira.
In Nigeria, however, the government has continued to pay for these under-recoveries through the NNPC.
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