The Government has announced a downward adjustment to the retail pump prices for petrol, diesel and illuminating paraffin with effect from Saturday December 5.
The reduction in retail prices for petrol, diesel and illuminating paraffin effected Friday midnight is the forth since historic oversupply of oil in the global market. The oversupply of oil was first experienced in the last two quarters of 2014. The oil glut therefore prompted government of Botswana to effect fuel reductions to the benefit of those mentioned above.
The first fuel reduction happened in early December 2014, about the same time as the recent one. Prices of all petrol grades had decreased by 60 thebe per litre while diesel 50ppm and diesel 500ppm were decreased by 50 and 60 thebe per litre respectively.
The next decline happened in February. At that time retail pump prices for unleaded petrol 93 decreased by 104 thebe per litre while retail prices for unleaded petrol 95 decreased by 103 thebe per litre. The third reduction then followed in September. In this reduction the retail prices for all grades of petrol decreased by 15 thebe per litre whereas the retail pump prices for all grades of diesel decreased by 40 thebe per litre. The retail pump prices for illuminating paraffin decreased by 40 thebe per litre.
The most recent fuel price reduction saw unleaded petrol 93 and 95 decreased by 17 thebe and 16 thebe per litre respectively and diesel 500 ppm and diesel 50 ppm decreased by 14 thebe and 16 thebe per litre respectively. Paraffin on the other hand decreased by 13thebe per litre.
The government will says it will continue to closely monitor the development of petroleum products prices, the result of which is optimal price control.
The recurring decline in fuel prices is believed to be presenting a window of opportunity to the transport sector.