Q: How will the transition impact fuel supply and distribution?
A: Unlike ULP 93, which is primarily produced by the Natref refinery, ULP 95 is available from multiple suppliers both regionally and internationally. This change will allow Botswana Oil Limited (BOL) to secure supply contracts from multiple sources, enhancing security of supply for the country.
Q: How will the transition impact Botswana’s energy security and independence?
A: Energy security is expected to improve, as Botswana will no longer rely on a single supplier (Natref for ULP 93). With access to multiple suppliers and alternative ports like Walvis Bay and Matola, the country will reduce its dependency on a single supply source or route.
Q: How will potential shortages or disruptions during the transition be managed?
A: A management of change process has been implemented to oversee the transition, conduct risk assessments, and develop mitigation strategies to minimise disruptions. This includes gradually replacing ULP 93 with ULP 95 in BOL’s storage facilities ahead of the official transition date.
Q: What support will be provided to low-income households or vulnerable groups?
A: The transition plan includes aligning prices between ULP 93 and ULP 95 to prevent any significant price disparity, ensuring no cost advantage between the two grades.
Q: Will there be regular reviews and assessments of the transition’s impact?
A: Yes, the Botswana Energy Regulatory Authority (BERA) will conduct regular assessments to monitor and evaluate the transition’s impact.
Q: Will existing infrastructure need to be retrofitted or upgraded?
A: Minimal changes are required. ULP 93 tanks will be drained before receiving the new ULP 95 grade, and minor adjustments will be made to retail pumps to accommodate ULP 95.
Q: What reductions in air pollution and emissions are expected?
A: While no local studies have been conducted, international research indicates that higher-octane fuels like ULP 95 can reduce CO2 emissions compared to ULP 93, leading to fewer overall emissions.
Q: What are the expected public health benefits?
A: Cleaner air due to reduced emissions will contribute to a healthier environment and improved public health.
Q: How have increased fuel costs affected consumers and businesses?
A: Higher fuel costs limit disposable income as consumers prioritise essential expenses. For businesses, increased fuel prices raise production costs, which are often passed on to consumers, contributing to inflation.
