In a surprising turn of events, Botswana’s fuel supply chain is showing some signs of distress, barely two months after state owned Botswana Oil Limited was granted a license to bring into the country 90 percent of total fuel imports.
A ground survey conducted in Gaborone has brought to light that three out of five sampled filling stations, Engen Kgale, Engen CA Sales, and Total Game City, have exhausted their stocks of Unleaded 95 petrol.
This shortage of the widely used fuel variant raises concerns about the robustness of the country’s fuel supply network. It does not end there. Despite initial assurances of a streamlined and citizen-centric approach to fuel logistics, recent developments suggest a reversion to reliance on foreign-owned companies for fuel importation. This publication has uncovered that Botswana Oil, which had previously declared that only Botswana citizen-owned logistics firms would be entrusted with the importation of fuel, has discreetly allowed international transport fuel from South Africa. This change in stance was evidenced by the sight of several Unitrans trucks lined up at the Tlokweng and Lobatse Pioneer Border posts, ready to transport fuel from Gauteng, South Africa, into Botswana.
According to industry players, the situation calls into question the long-term viability of Botswana Oil’s strategy and its implications for the nation’s fuel security. Among others, Botswana Oil was established to ensure security of fuel supply for the benefit of all Batswana. Previously, the Chief Executive Officer, Meshack Tshekedi has allayed fears that the national oil company would face strong headwinds in its mandate of importing 90 percent of the country’s petroleum needs, while 10 percent imports is catered for by local companies. “We spent a lot of efforts building the requisite capacity,” said Tshekedi. With the country consuming approximately 1.3 billion litres per annum and 108million litres per month, Botswana Oil has put in place a six months transitional plan, allowing the company to take over importing of fuels. One of the mitigation plans BOL has embraced is spreading the risks, through contracting different suppliers from three different routes which include – South Africa, Namibia and Mozambique,
In the past, government Chief Energy Engineer, Baruti Regoeng said the new Botswana Oil mandate is expected to ensure the security of supply, balance the interests of suppliers, retailers, and consumers, and encourage citizen participation to ensure a reliable countrywide supply of fuels. He stressed the new development will face many challenges. "But we should not despair. We are stopping something and starting something to improve on it. The government is determined to strategically promote citizen-owned companies in the petroleum sector," he said.
A ground survey conducted in Gaborone has brought to light that three out of five sampled filling stations, Engen Kgale, Engen CA Sales, and Total Game City, have exhausted their stocks of Unleaded 95 petrol.
This shortage of the widely used fuel variant raises concerns about the robustness of the country’s fuel supply network. It does not end there. Despite initial assurances of a streamlined and citizen-centric approach to fuel logistics, recent developments suggest a reversion to reliance on foreign-owned companies for fuel importation. This publication has uncovered that Botswana Oil, which had previously declared that only Botswana citizen-owned logistics firms would be entrusted with the importation of fuel, has discreetly allowed international transport fuel from South Africa. This change in stance was evidenced by the sight of several Unitrans trucks lined up at the Tlokweng and Lobatse Pioneer Border posts, ready to transport fuel from Gauteng, South Africa, into Botswana.
According to industry players, the situation calls into question the long-term viability of Botswana Oil’s strategy and its implications for the nation’s fuel security. Among others, Botswana Oil was established to ensure security of fuel supply for the benefit of all Batswana. Previously, the Chief Executive Officer, Meshack Tshekedi has allayed fears that the national oil company would face strong headwinds in its mandate of importing 90 percent of the country’s petroleum needs, while 10 percent imports is catered for by local companies. “We spent a lot of efforts building the requisite capacity,” said Tshekedi. With the country consuming approximately 1.3 billion litres per annum and 108million litres per month, Botswana Oil has put in place a six months transitional plan, allowing the company to take over importing of fuels. One of the mitigation plans BOL has embraced is spreading the risks, through contracting different suppliers from three different routes which include – South Africa, Namibia and Mozambique,
In the past, government Chief Energy Engineer, Baruti Regoeng said the new Botswana Oil mandate is expected to ensure the security of supply, balance the interests of suppliers, retailers, and consumers, and encourage citizen participation to ensure a reliable countrywide supply of fuels. He stressed the new development will face many challenges. "But we should not despair. We are stopping something and starting something to improve on it. The government is determined to strategically promote citizen-owned companies in the petroleum sector," he said.
