- Tsaone Segaetsho
The Botswana Energy Regulatory Authority (BERA) has clarified that the suspension of the Fuel Levy (FL), Road Fund Levy (RFL), and Security of Supply Margin (SSM), as announced in Government Gazette No. 51 of 2026, will not result in an immediate reduction in fuel pump prices.
In a statement issued this week, BERA, through it’s Chief Executive Officer, Dr. Never Tshabang, said the intervention is rather aimed at cushioning consumers and industry from imminent increases driven by sustained pressure in global oil markets. Botswana’s regulated fuel pricing framework is designed to smooth price adjustments over time, allowing authorities to absorb short-term shocks and avoid abrupt changes at the pump.
Tshabang explained that following the latest fuel price adjustment on 28 March 2026, under-recoveries stood at 32 thebe per litre for petrol, P1.41 per litre for diesel, and 83 thebe per litre for illuminating paraffin by 31 March 2026. These under-recoveries represent the gap between the actual cost of fuel and the regulated retail price.
Under normal circumstances, such cost differentials would have triggered an equivalent increase in pump prices. However, the temporary suspension of the three levies has effectively absorbed part of this pressure, shielding consumers from an immediate price hike.
“The benefit of this intervention will be realised through the fuel pricing adjustment system, which manages the difference between the actual cost of fuel and the regulated price over time,” Tshabang said.
The authority emphasised that this approach aligns with established regulatory principles, where cost pressures are managed through a structured recovery mechanism rather than being passed directly and immediately to consumers. This not only enhances price stability but also supports economic planning for businesses reliant on fuel inputs, including transport, mining, and manufacturing.
While the measure provides short-term relief, Tshabang cautioned that global fuel costs remain elevated, and underlying pressures have not been eliminated. Instead, they are being managed within the pricing framework and may be recovered gradually in future adjustments, depending on market conditions.
Tshabang added that it will continue to closely monitor developments in international oil markets and, in consultation with government, implement appropriate regulatory measures to mitigate extreme price volatility. The authority reaffirmed its commitment to ensuring fair, transparent, and efficient regulation of the petroleum sector, balancing consumer protection with the long-term sustainability of fuel supply.
