Frequently Asked Questions

What major projects is BOL currently undertaking?

BOL is currently involved in several projects to increase the petroleum products storage in the country. Currently fuel is mainly imported and supplied by Multinational companies who are primarily profit driven and who could divest from Botswana at any point (free market economy). It is therefore critical that Botswana maintains strategic fuel reserves that can support the economy during market changes,hence these and other projects to ensure products security in Botswana;

  • Tshele Hills Depot situated in the southern part of the country is being constructed as a petroleum strategic reserve to guard against fuel supply disruptions. The 186 million litres depot will receive product mainly through South Africa.
  • The Francistown Depot is currently being expanded from 35 million litres to 95 million litres. The depot will receive product mainly through Mozambique.
  • BOL also has plans to construct a 20 million litres depot in Ghanzi to receive product through Namibia.
  • BOL is exploring the development of a coal to liquid industry which will see the production of petroleum products from either coal or gas.
  • The planned construction of a Liquefied Petroleum Gas plant in Palapye.
Where does BOL source its product?

Currently BOL sources fuel mainly from South Africa. The BOL supply strategy focuses on diversifying the sources of fuel, with plans to source some of the fuel from an array of countries including Mozambique and Namibia. BOL is currently testing these alternative sources. The diversification of supply routes will mitigate the risks associated with having a single source of supply of product and lead to a more stable and secure supply base for the country.

How does the reduction in crude oil prices impact the pricing of fuel locally ?

When the price of crude oil goes down, the buying price or import price becomes competitive. This benefits businesses active in the petroleum sector as they may receive favourable prices from the market and benefit from favourable supply margins. Pricing of petroleum products in Botswana is controlled by the Government of Botswana. BOL does not control the pricing of fuel, this responsibility lies with the Botswana Energy Regulatory Authority (BERA) which makes a recommendation to Cabinet for consideration.

Does BOL offer fuel at a subsidised cost?

BOL does not offer fuel at subsidised cost. Pricing in Botswana is regulated through the industry slate also referred to as ‘Botswana Unit Rates.

Does BOL own any filling stations?

No. filling stations are classified under retail which falls under the secondary distribution space. BOL is a wholesaler and only operates in the primary distribution space.

Will Botswana Oil Limited push local companies and International Oil Companies (IOCs) out of the local oil industry?

BOL serves as a primary distribution channel to the wholesale market. BOL does not play in the retail space currently being serviced by International Oil Comapnies (IOCs). BOL’s role includes provision of petroleum products to International Oil Companies (IOCs) and citizen companies. BOL also services other countries (bulk sales) that may require product.

Are there any plans to expand this product portfolio?

Botswana Oil Limited plans to expand its product portfolio to include lubricants, jet fuel and Liquified Petroleum Gas (LPG).

What products are currently included in the BOL product portfolio?

Currently, BOL offers diesel 500PPM and 50PPM, ULP93 and ULP95 and paraffin.

How does BOL plan to achieve its mandate?

BOL aims to achieve its strategic objectives by ensuring:

  • Procurement and securing of fuel supplies on behalf of the Government of Botswana.
  • Alternative supply routes to mitigate the risks associated with single source supply.
  • Optimal management of Government’s strategic fuel stocks.
  • Development of opportunities to leverage fuel storage facilities to generate income.
  • Provision of petroleum products to the market to ensure continuous supply.
  • Development of strategic partnerships with international and regional stakeholders in the oil industry.

 

What is the mandate of Botswana Oil Limited?

Botswana Oil Limited (BOL) is mandated:

a) To ensure the security and efficiency of the supply and distribution of petroleum products such as diesel, petrol and paraffin in Botswana.

b) To manage Government owned strategic fuel reserve facilities including strategic stocks. BOL manages Government depots as well as stocks sourced on behalf of the Government. Construction of the facilities is carried out by Government and then they are handed over to BOL for operation and management.

c) To be the Government of Botswana’s transformation agent in the oil and gas industry.

d) To facilitate citizen participation in the petroleum sector. To achieve this, BOL works with Citizen Emerging Companies (CECs) which are active in the petroleum sector to ensure that they meaningfully contribute to the industry. This could be through CECs sourcing product from or selling product to Botswana Oil Limited. BOL also leases fuel storage space to CECs, trains, coaches and mentors them on the industry.

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