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Botswana to introduce cleaner fuel next year

mm by Staff Writer
October 24, 2024
in News
Reading Time: 2 mins read
0
Fuelnomics behind the transport fares furore

GABORONE 1 March 2021, A fuel filling station attendant pumping fuel in a car on 1 March 2021. According to the Botswana Energy Regulatory Authority (BERA) retail pump prices increase from today as Unleaded petrol 93 price increases by 58 thebe per litre, while unleaded petrol 95 increases 57 thebe per litter and diesel 52 thebe per litre. (Pic: MONIRUL BHUIYAN/PRESS PHOTO)

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  • BERA to introduce ULP98, explores10 ppm diesel

 

Botswana will introduce ultra-premium unleaded petrol (ULP98) at the start of next year as part of efforts to phase out the lower-grade 93 petrol, the Botswana Energy Regulatory Authority (BERA) has announced.

 

ULP98, regarded as a premium fuel, will replace the current 93 grade, which will be withdrawn from the market on February 1, 2025, due to persistent supply challenges.

 

“As a country to be safe we don’t have to be trading one grade because if we take out the 93 we are left with 95,” BERA Chief Operations Officer, Batsumi Rankokwane told this publication in an interview. 

 

In addition to the introduction of ULP98 petrol, Rankokwane revealed that BERA is exploring the introduction of 10 ppm diesel, a cleaner fuel option. Currently, Botswana offers only 50 ppm diesel, following the phase-out of 500 ppm diesel in December 2020.

As Botswana transitions to these new fuel grades, BERA will begin discussions with stakeholders regarding the reintroduction of other fuel types.

“It’s a process because we first need to engage importers to assess their capability to source the product,” explained Rankokwane.

Another key consideration is consulting with refiners to determine their capacity to produce the new fuels and the quantities they can supply. This consultation aims to avoid situations where newly introduced products could become unavailable due to supply issues.

During this transition, BERA is actively engaging vehicle dealers and government entities, including the Central Transport Organisation (CTO) and local councils. These consultations will help align procurement processes with BERA’s strategies and ensure a seamless transition.

“We have engaged them on the discontinuation of 93-grade petrol, and they should now prepare for the transition period through the end of January next year,” added Rankokwane.

BERA’s pricing analysis reveals that nearly 100% of the region’s petroleum products are currently sourced from Singapore. This represents a shift from the previous framework, in which about 50% of the supply originated from the Arab Gulf (particularly Kuwait) and Mediterranean regions, such as Italy.

 

Tags: Batsumi RankorwaneBotswana Energy Regulatory Authority (BERA)

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