30th July 2020
Own Correspondent
The Permanent Secretary in the Ministry of the Minerals Resources, Green Technology and Energy Security(MMGE) Mmetla Masire told stakeholders Government introduced essential supplies and services(petroleum) regulations limiting individuals to P250.00 per vehicle, restricting people from leaving vehicles at filling stations and using jerry cans on Thursday from 06:00 to 18:00 hours to overcome panic buying which would have exacerbated the existing fuel crises.
Vehicles allowed to have unrestricted fuel quantities are for emergency services like air traffic control vehicles, emergency service vehicles, government vehicles, public transport vehicles and vehicles weighing 5 tons and above.
Officials also acknowledged that there were emerging challenges with the supply of Liquefied Petroleum Gas(LPG) mainly imported from South Africa. On average Botswana consumes about 18,000 tonnes of LPG annually which is mainly used for cooking and heating in urban areas.
“Winter season is naturally a peak season for LPG demand. However, this year a number of factors have contributed to this demand spike which is rather a little higher than normal,” said Mmetla Masire, Permanent Secretary in the Ministry of the Minerals Resources, Green Technology and Energy Security(MMGE).
He said, “When demand increases South African supplies prioritise their customers(eg. Poultry farms and manufacturers) mainly due to the types of contracts they have with them. Due to the current border control procedures in order to curb COVID-19 spread in Botswana, some suppliers and transporters are reluctant to come to Botswana.”
According to officials Botswana does not have sufficient storage facilities for products like LPG and only relies upon privately owned retail facilities. This therefore means that LPG entering the country is not stored but for retail. Recently South Africa has been experiencing temporary border closures for fumigation against COVID-19 virus. This has led to a delay in LPG entering the country.
Usually the LPG demand spikes are very seasonal and it is expected that when summer starts, they also come to an end. However, the Ministry through Botswana Energy Regulatory Authority(BERA) is monitoring the situation closely with LPG companies.
“Our observation is that some retailers go for so long as seven days without LPG and they say that under normal winter demand spike circumstances these would be 3 days. Sometimes even when product is available there may be shortage of cylinders and because cross filling is prohibited consumers may be holding empty cylinders belonging to a company that is dry at the time,” said Masire.
Since LPG pricing is currently not regulated, it usually follows that an increase in demand v supply lead to price increases. According to officials only Tswana Gas was dry whilst 4 sites across the country were running low with only 1 – 5 tonnes of LPG available.
At least 10 tankers were allegedly en route to deliver with 3 already having crossed the border with other deliveries expected to deliver shortly there after.
