Restored levies could replenish the National Petroleum Fund as BERA balances consumer protection with pressure on fuel retailers.
BONGANI MALUNGA
More than P250 million in monthly fuel levies will be channelled into the National Petroleum Fund (NPF) over the next six months, according to Botswana Energy Regulatory Authority (BERA) chief executive Dr Never Tshabang. The arrangement could inject more than P1.5 billion, provided collections remain at anticipated levels.
FUND PRESSURE
Speaking on national television last Tuesday, Tshabang outlined efforts to rebuild the fund after six months of suspended levies. Collections were suspended from April to early October while the fund continued absorbing pressure from international petroleum costs.
According to Tshabang, fuel prices would have required upward adjustments at various points over the past five months. The NPF absorbed much of that pressure, shielding households and businesses from additional costs by bridging the gap between import costs and regulated selling prices, known as an under recovery.
LEVIES RESTORED
The Fuel Levy, Road Fund Levy and Security of Supply Margin were reinstated on 8 October to rebuild the fund’s financial capacity. BERA has clarified that restoring the levies does not automatically translate into higher pump prices.
The challenge extends beyond motorists to fuel retailers facing pressure on their businesses. The Botswana Petroleum Retailers Association (BOPRA) has raised concerns about tight dealer margins and competition from larger operators offering discounted fuel, particularly the impact on smaller independent filling stations.
RETAILER CONCERNS
In concerns reported in June, association representative Billy Sekgororoane called for a transparent dealer margin methodology that reflects costs. He warned that prevailing market conditions threatened smaller retailers’ viability over the longer term.
BERA maintains that discounting below the regulated maximum pump price is permissible and increased the dealer margin to P1.09 per litre in February. These competing pressures leave the regulator balancing affordability with the financial sustainability of importers, retailers and the NPF.
SUPPLY COVER
Meanwhile, Tshabang offered reassurance about fuel availability. He said storage facilities held sufficient diesel stocks for 15 days’ cover and petrol supplies for 14 days’ cover.