Botswana grants its state oil company control of fuel imports

Botswana Oil will have exclusive rights to import 90% of the southern African nation’s fuel supply as the government seeks to reduce market volatility, according to an official.

The state-owned company plans to enter into contracts with multiple suppliers and consolidate volumes, giving it more leverage to negotiate on prices and terms, Mpho Mokgosi, a spokeswoman for Botswana Oil, said in an emailed response to questions. It will get an import quota for 90% of fuel supply starting in April, according to a notice in the Government Gazette. 

“The rational is to give the government, through Botswana Oil Limited, responsibility over the country’s security of supply on the backdrop of increasing global and regional supply-chain challenges that expose the country’s security of supply to risks,” Mokgosi said. 

Botswana consumes about 22,000 barrels a day of liquid fuels and has no domestic production, according to US Energy Information Administration data. Its dependence on supply from South African refineries has been jarred by disruptions and shutdowns, spurring plans to use storage facilities in Mozambican and Namibian ports.