Sunday, November 28, 2021

Botswana Oil to increase stockpiles as fuel price decreases

Botswana Oil Limited (BOL) says the latest decrease in retail fuel prices will have a positive impact on customers as they will be paying less for petroleum products. 

On Monday government announced to the public and other consumers that the retail pump prices for petrol, diesel and illuminating paraffin was decreased with effect from 00h01, Monday 1st February 2016. Government stated that the decrease was due to a general decline in international crude oil prices and refined product prices. Average crude oil prices have been falling mainly due to oversupply and weak global oil demand. There has also been persistent oversupply with strong signs of slowing pace of economic growth in consumer countries such as China. 

In a brief interview, BOL acting Chief Executive Officer (CEO) Modise Koofhethile said BOL continues to monitor petroleum industry related market dynamics and is aware of the decrease in the price of crude oil. He stated that they continue to procure products while the cost is low in order to replenish national reserves and source product for sale to their clients.  

“As you can appreciate the global oil industry is influenced by various market dynamics. It is therefore difficult for one to anticipate with certainty how long upward or downward trends in the cost of crude may last,” he said.

Koofhethile further said that acknowledgement of the dynamism of the industry is the reason that BOL closely monitors these changes through platforms such as Platts and Thompson Reuters Eikon, which are world leading sources of intelligent information related to the oil and gas industry. 

He is of the view that with the decrease in retail prices of petrol, diesel and paraffin comes a cost saving for all those who utilize these products on a daily basis. He believes that in essence this means that as a Motswana one will be spending less for example, to fill-up on petrol, diesel and purchase paraffin, travel to and from work, connect with family and friends and move their goods if one has a business. 

“Petroleum products are widely used throughout the country and impact us on a social and economic level,” he said.

He further stated that the decrease in crude prices means that BOL can procure product while the cost is low and replenish national reserves and source product for sale to their clients. 

As the National Oil Company (NOC) of Botswana, said Koofhethile, BOL will continue to work with local, regional and international partners so as to achieve the mandate of ensuring security and efficiency of supply of petroleum products to Botswana. He added that they are working purposefully to encourage active participation of citizens in the petroleum industry and have long term plans to embark on projects that will lead to equitable access of product in the country and Botswana enjoying fuel sufficiency. In the new price adjustments, retail pump prices for all petrol grades (unleaded petrol 93 and 95) have been decreased by 15 thebe per litre; while retail pump prices for all diesel grades (diesel 500 ppm and 50 ppm) have been decreased by 45 thebe per litre. On the other side retail pump price for illuminating paraffin have been decreased by 55 thebe per litre. Meanwhile government road fund levy got increased by 20 thebe per litre.

RELATED STORIES

Read this week's paper