Fuel retailers weigh in on price decrease

Botswana Petroleum Retailers Association (BOPRA) has welcomed the reduction in fuel prices because it provides relief to consumers and businesses.However, the reduction does not ease the financial pressures facing fuel retailers, said Tebogo Nametsagang, BOPRA Public Relations Officer in an interview on Wednesday this week. He stated that the regulated dealer margin remains unchanged at P1.09 per litre, while the fixed costs of operating a service station, such as salaries, electricity, rent, security, maintenance, continue to increase. BOPRA is an association registered in 2024 that represents approximately 49 individual fuel sites and independent retailers across major oil brands.On Monday this week, Botswana Energy Regulatory Authority (BERA) announced that Retail pump price of unleaded petrol 95 will be decreased by 231 thebe per litre. The new pump price will be 1821 thebe per litre. Retail pump price of diesel 50ppm has been decreased by 412 thebe per litre.The new price is 2093 thebe per litre. Retail pump price of illuminating paraffin has been decreased by 533 thebe per litre with the new price being 1833 thebe per litre. “Average Brent crude oil prices fell sharply by 18.6 percent from U$103.71 per barrel in May 2026 to U$84.43 per barrel in June 2026. Likewise international prices of refined products also followed a similar trajectory during the month,” said BERA. However, BOPRA has quashed this development, noting that in practical terms, they are simply buying and selling fuel at a lower regulated price.They share that their profitability does not improve because the margin per litre remains the same, while operating costs continue to rise. Nametsagang highlighted that from the perspective of petroleum retailers, this adjustment does not necessarily ease the operational and financial pressures that filling stations have been experiencing in recent weeks.He revealed that the challenges facing retailers are largely structural and relate to the sustainability of the regulated retail margin, increasing operating costs, financing costs, labour expenses, utilities, and compliance obligations. Nametsegang further argued that while lower fuel prices may improve consumer sentiment and potentially stimulate fuel demand, they do not, on their own, resolve the underlying viability challenges facing service station operators.“As an association, we remain committed to engaging with the regulator and other stakeholders to find sustainable, long-term solutions that will ensure a healthy and resilient fuel retail sector that continues to serve the public effectively,” he said adding that the structural challenges affecting the sustainability of fuel retailers therefore remain unchanged.

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Fuel retailers weigh in on price decrease