IOCs cite persistent shortages and rising costs, while Botswana Oil points to regional supply constraints and outlines measures to maintain fuel availability.
BONGANI MALUNGA
Botswana’s international oil companies (IOCs) say fuel supply shortfalls are increasing costs and jeopardising their relationships with customers, while Botswana Oil Limited (BOL) says the industry is facing broader regional and global petrol supply constraints.
According to industry figures, BOL supplied approximately 70 percent of the petroleum volumes nominated by IOCs in September 2026. Petrol imports also declined by 27 percent compared with the average monthly volume recorded from January to August.
SUPPLY SHORTFALLS
“The biggest challenge for us as international oil companies is that we are still accountable to our customers for fuel availability but we do not have full control over the supply chain,” said Sesupo Wagamang, Chairman of the International Oil Companies and Managing Director of Vivo Energy Botswana.
BOL assumed responsibility for importing 90 percent of Botswana’s petroleum requirements in April 2024, with the remaining 10 percent reserved for citizen-owned oil companies. Industry figures estimate that BOL recorded a cumulative 20 percent shortfall against IOC demand during its first year under the arrangement.
RISING COSTS
Oil companies say shortages in southern Botswana have forced them to transport fuel from northern supply points, pushing costs to as much as four times the normal transportation cost per load, according to industry estimates.
“When there are disruptions in supply, it affects our ability to operate efficiently, it affects our profitability and, most importantly, it affects the relationship we have built with our customers,” Wagamang said.
“The objective of fuel security is something that we all support. But fuel security must ultimately translate into reliable availability of product across the country. We need a system that allows all stakeholders to fulfil their responsibilities and ensures that customers can access fuel when they need it,” he added.
BOL RESPONDS
BOL acknowledged operational and logistical difficulties but said the September shortages had to be considered in the context of limited regional petrol supplies.
BOL also cited high market volatility in Unleaded Petrol 95, which it linked to geopolitical conflicts in the Middle East and wider energy sector strains, saying these pressures had limited supply options across the region.
“While recognising the operational and logistical challenges experienced by industry participants during September 2026, it is important to appreciate that the prevailing supply constraints are occurring against a backdrop of broader global and regional petroleum supply challenges, particularly concerning the availability of Unleaded Petrol (ULP). South Africa, Namibia and Mozambique had limited ULP for export, notwithstanding the prevailing supply challenges, BOL has put in place mitigations to ensure product availability,” BOL told The Botswana Gazette.
The company also provided figures that differed from the industry’s estimate of the September shortfall.
“From January to August 2026, BOL availed petroleum products in line with industry nominations. In September, uplifts reached 88% for ULP95 and 95% for Diesel 50ppm. BOL remains committed to working collaboratively with the regulator and industry players to effectively manage the country’s petroleum requirements. The Company’s immediate priority is to monitor product availability, coordinate supply and distribution arrangements, and pursue alternative sourcing opportunities to improve security of supply.”
The industry’s 70 percent estimate concerns volumes nominated by IOCs, while BOL’s figures concern product uplifts. The statements do not establish whether the figures were calculated on directly comparable bases.
ENERGY SECURITY
BOL defended the policy giving it responsibility for most petroleum imports.
“The establishment of the 90% import quota for BOL by the Government of Botswana was based on the strategic importance of energy security to Botswana’s economic development and national interests. The framework is intended to strengthen the country’s capacity to manage, coordinate petroleum imports, diversify supply sources, develop strategic reserves and reduce exposure to external supply disruptions,” BOL added.