Botswana’s recurring fuel shortages are placing increasing pressure on multinational and international oil companies, with industry players warning that persistent supply disruptions are affecting business operations, profitability and relationships with customers.
The concerns have intensified since Botswana Oil Limited (BOL) assumed responsibility for the bulk procurement and distribution of fuel under the government’s 90% import mandate, which took effect in April 2024.
Under the arrangement, BOL is responsible for importing 90% of the country’s fuel requirements, while the remaining 10% is reserved for local citizen-owned oil companies. The policy was introduced to strengthen national fuel security, improve coordination of fuel imports and ensure the country maintains adequate strategic reserves.
However, International Oil Companies (IOCs) say recurring supply shortfalls are creating significant operational challenges, particularly when demand exceeds the volumes made available by BOL.
Figures from the industry show that BOL fulfilled an estimated70% of the product demand nominated by IOCs for September 2026, leaving an estimated 30% shortfall against the total volumes requested by the companies.
The supply constraints have also been reflected in declining petrol imports. Petrol imports in September 2026 fell by an average of 27% compared with the year-to-date monthly average recorded between January and August 2026, pointing to a significant reduction in the volumes entering the market.
The impact is not limited to product availability. The shortages are also creating additional logistical and financial pressures for oil companies. The unavailability of petroleum products in southern Botswana has forced companies to transport fuel from northern supply points to southern destinations, resulting in transportation costs increasing by up to four times per load compared with normal distribution arrangements, where products would ordinarily be sourced from Gaborone.
The industry says the additional transportation requirements are further increasing the cost of distribution at a time when companies are already dealing with constrained product availability.
The supply challenge has also accumulated over time. During the first year of BOL’s 90% import mandate, the company recorded a cumulative supply shortfall of an estimated 20% against IOCs demand, according to industry figures.
Chairman of the International Oil Companies, Sesupo Wagamang, said the persistent supply constraints were becoming increasingly difficult for IOCs to manage, particularly because companies remained accountable to customers for product availability despite having limited control over the upstream supply chain.
“The biggest challenge for us as international oil companies is that we are still accountable to our customers for fuel availability, but we do not have full control over the supply chain,” Wagamang said.
He said the recurring shortages were affecting companies across their operations and were creating pressure on both profitability and customer relationships.
“When there are disruptions in supply, it affects our ability to operate efficiently, it affects our profitability and, most importantly, it affects the relationship we have built with our customers,” Wagamang said.
The transportation challenges are further complicating operations, with companies having to move product over longer distances to meet demand in areas experiencing shortages.
According to industry figures, sourcing fuel from northern supply points for southern markets has resulted in transportation costs rising to as much as four times the normal cost per load. The additional logistics costs have significant implications for the economics of fuel distribution and the ability of companies to operate efficiently.
Wagamang said the industry recognised the government’s objective of strengthening national fuel security but stressed the importance of ensuring that the current procurement model delivers consistent and reliable supply.
“The objective of fuel security is something that we all support. But fuel security must ultimately translate into reliable availability of product across the country. We need a system that allows all stakeholders to fulfil their responsibilities and ensures that customers can access fuel when they need it,” he said.
The 90% import mandate was introduced as part of government’s strategy to centralise fuel procurement, strengthen strategic reserves and reduce Botswana’s exposure to international supply disruptions.
The government has previously argued that relying entirely on multinational oil companies to import fuel presented a national security risk, particularly during global crises when international companies could reduce supplies or redirect products to other markets.
However, the recurring shortages have raised concerns within the industry about the effectiveness of the current supply chain and whether the system is delivering the uninterrupted availability it was designed to secure.
For IOCs, the challenge is compounded by the fact that they continue to carry significant downstream responsibilities, including operating service stations, maintaining infrastructure, employing staff and servicing customers, while having limited influence over the volume and timing of fuel available to them.
The industry is therefore calling for closer coordination between government, BOL and oil companies to address supply bottlenecks, improve demand fulfilment and ensure that the country’s fuel security framework translates into consistent availability at service stations.
The September figures, particularly the 27% decline in Petrol imports versus prior months, underscores the scale of the challenge facing the industry as Botswana continues to transition to the new fuel procurement model.
