Botswana Oil reserves affected by the lack of supply of ULP93

Fuel industry stakeholders and experts are urging the Botswana Energy Regulatory Authority (BERA) to introduce legislation to discontinue ULP 93, which would support the industry, and for Botswana Oil to maintain adequate reserves.

Recently, Botswana has faced a fuel supply shortage, particularly with ULP 93, forcing motorists to switch to ULP 95, which is slightly more expensive. This shortage was triggered by refinery maintenance in South Africa, causing a sudden surge in demand for ULP 95 and leading to panic.

Speaking to Botswana Guardian anonymously, industry insiders noted that while the situation is improving and fuel is gradually becoming available, it will take time to stabilise due to backlogs and low supplies at many stations.

This week, more delivery trucks were seen at both the Botswana Oil depot in Gaborone’s industrial area and the staging ground in Old Naledi. However, it remains uncertain whether these trucks were carrying petrol or diesel.

The experts emphasised that the current focus should be on recovering the lost fuel volumes and stabilising the situation, assuring that there is no need for panic. They acknowledged that the fuel industry experiences fluctuations, but a major crisis has been avoided.

The key takeaway from this situation, they said, is the urgent need to phase out ULP 93. It is crucial for Botswana to focus solely on ULP 95, which is more readily available in markets like Namibia, Mozambique, and South Africa, unlike ULP 93.

They also suggested that the issue of pricing should be addressed by the regulator. BERA needs to consider how to adjust the premium on ULP 95 to accommodate those who currently buy ULP 93 because it's more affordable.

"The most effective way to resolve this problem is to prioritise ULP 95 and for BERA to review its pricing," they added. Experts argue that phasing out ULP 93 would bring several advantages, with the main one being that filling stations would be able to increase capacity by stocking just one grade, instead of having to carry both ULP 93 and ULP 95 at all times.

The Botswana Guardian learned from reliable sources that BERA held a meeting with all stakeholders last week. However, the meeting yielded little clarity, as stakeholders had anticipated a clear explanation regarding the confusion and frustration currently affecting the market. What is becoming increasingly apparent in the industry is that some parties are withholding the full truth, which could lead the country into a deeper crisis.

Industry players recall that years ago, there was a proposal for Botswana to phase out ULP 93. A workshop attended by major car dealerships like Barlo World, Motor Centre, Motor Holdings, and the Department of Transport supported this idea. At the time, transport experts pointed out that the oldest car model still registered in Botswana, made in 1996, was the only vehicle that could not use ULP 95. Most vehicles can even run on ULP 97.

The issue with ULP 93 is that Botswana, Eswatini, and Lesotho, who are among the few countries still using it, depend on a single supplier. When that supplier encounters problems, such as maintenance work, the entire supply chain collapses, as is happening now.

The only sustainable solution, experts suggest, is to prioritise fuel products that ensure a secure and stable supply. Transitioning to readily available fuels like ULP 95 is the most viable option.

Last weekend, several filling stations in Botswana ran dry, and long queues formed at others. The situation was worsened by the temporary closure of the Kopfontein (Tlokweng) border gate on the South African side, caused by a major water pump burst, which left many delivery trucks stranded in South Africa.

Efforts to get a comment from all authorities at the time of going to press were not successful.