{"id":879626,"date":"2026-10-20T06:48:23","date_gmt":"2026-10-20T04:48:23","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=879626"},"modified":"2026-10-20T06:48:23","modified_gmt":"2026-10-20T04:48:23","slug":"the-country-that-buys-most-of-its-fuel-from-south-africa-and-charges-r8-38-less-per-litre","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/879626\/the-country-that-buys-most-of-its-fuel-from-south-africa-and-charges-r8-38-less-per-litre\/","title":{"rendered":"The country that buys most of its fuel from South Africa and charges R8.38 less per litre"},"content":{"rendered":"\n<p>Despite importing the majority of its fuel from South Africa, Botswana charges less per litre for petrol and diesel.<\/p>\n\n\n\n<p>Conflict in the Middle East has caused fuel prices to spike globally, with oil prices consistently reaching above $100 per barrel since February 2026.<\/p>\n\n\n\n<p>The surge in prices came after the closure of the Strait of Hormuz, an important shipping lane for global oil trade.<\/p>\n\n\n\n<p>These global events have had a heavy toll on South Africa, where fuel prices have risen drastically since the start of the year.<\/p>\n\n\n\n<p>In October, petrol prices reached a historic high of over R30 per litre, while the wholesale diesel price hit R33.29 per litre.<\/p>\n\n\n\n<p>While South Africans have faced severe pressure from rising fuel prices, Botswana has not changed petrol prices since July 2026.<\/p>\n\n\n\n<p>The country&#8217;s most recent change to its fuel prices was a decrease announced on 6 July 2026, which reduced the retail prices of petrol, diesel, and illuminating paraffin.<\/p>\n\n\n\n<p>Currently, Botswana pays 1,821 thebe (R21.86) per litre of 95 unleaded, R8.39 less than the cost in South Africa.<\/p>\n\n\n\n<p>Similar to South Africa, Botswana&#8217;s fuel prices are regulated by a government body, the Botswana Energy Regulatory Authority (BERA).<\/p>\n\n\n\n<p>While South Africa&#8217;s fuel prices are adjusted monthly, based on global prices and currency fluctuations, BERA only makes price adjustments when it deems them necessary.<\/p>\n\n\n\n<p>To shield consumers from price shocks, Botswana&#8217;s government also suspended several fuel levies earlier this year.<\/p>\n\n\n\n<p>South Africa used a similar tactic at the onset of the war in Iran, temporarily suspending the General Fuel Levy (GFL), reducing fuel prices by R3 per litre.<\/p>\n\n\n\n<p>Botswana suspended its Fuel Levy, Road Fund Levy, and Security of Supply Margin, and all three were recently reinstated.<\/p>\n\n\n\n<p>While the levies were returned, it did not result in any immediate changes to the country&#8217;s retail petrol prices, BERA said.<\/p>\n\n\n\n<p>&#8220;Any future adjustment to pump prices will be determined through the established fuel pricing adjustment mechanism, taking into account prevailing international fuel prices, exchange rate movements, accumulated under or over recoveries and other relevant market factors,&#8221; it said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fuel prices in South Africa vs Botswana<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\" class=\"has-fixed-layout\"><tbody><tr><td><\/td><td><strong>South African price per litre<\/strong><\/td><td><strong>Botswanan price per litre<\/strong><\/td><td><strong>difference<\/strong><\/td><\/tr><tr><td>95 unleaded petrol<\/td><td>R30.25<\/td><td>R21.89<\/td><td>R8.36<\/td><\/tr><tr><td>50ppm diesel<\/td><td>R33.29<\/td><td>R25.16<\/td><td>R8.13<\/td><\/tr><tr><td>Illuminating paraffin<\/td><td>R24.47<\/td><td>R22.04<\/td><td>R2.43<\/td><\/tr><\/tbody><\/table><\/div><figcaption class=\"wp-element-caption\">Based on an exchange rate of P1 to R1.20.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">A net importer<\/h2>\n\n\n\n<p>The lower petrol prices in Botswana persist despite the country being a net fuel importer, with most of its supply coming from South Africa.<\/p>\n\n\n\n<p>In July 2026, Botswana&#8217;s Oil Chief Strategy and Sustainability Officer, Letshego Moeng, said the country imports the majority of its oil from South Africa.<\/p>\n\n\n\n<p>&#8220;Primarily, we source oil through South Africa and some of it from Mozambique and Namibia,&#8221; he said.<\/p>\n\n\n\n<p>He added that the country imports approximately 1.3 billion litres of oil per year, with the majority of its consumption being diesel.<\/p>\n\n\n\n<p>Data from the <a href=\"https:\/\/wits.worldbank.org\/CountryProfile\/en\/Country\/BWA\/Year\/LTST\/TradeFlow\/Import\/Partner\/by-country\/Product\/27-27_Fuels\">World Bank<\/a> echoes Moeng&#8217;s statements, noting that Botswana imported roughly 67% of its fuel from South Africa in 2023.<\/p>\n\n\n\n<p>Despite importing large amounts of its fuel from South Africa, Botswana has lower fuel prices than its Southern neighbour.<\/p>\n\n\n\n<p>Part of this difference is due to levies imposed on South Africa&#8217;s retail fuel prices, including the GFL and the Road Accident Fund.<\/p>\n\n\n\n<p>Currently, the GFL adds R4.10 per litre to petrol prices, while the RAF increases the price by an additional R2.25 per litre.<\/p>\n\n\n\n<p>The GFL is imposed to generate tax revenue for upgrading and maintaining the country&#8217;s roads and related infrastructure, but it is not specifically ringfenced for these purposes.<\/p>\n\n\n\n<p>The RAF is used to compensate victims of vehicle accidents and their dependants, and pays for medical costs, loss of income, and other general expenses.<\/p>\n\n\n\n<p>Recently, the RAF proposed <a href=\"https:\/\/businesstech.co.za\/news\/energy\/879374\/some-good-news-for-petrol-prices-in-south-africa\/\">increasing the RAF<\/a> levy to R3 per litre, but this idea was nixed by Transport Minister Barbara Creecy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite importing most of its fuel from South Africa, Botswana has lower fuel prices than its trade partner.<\/p>\n","protected":false},"author":131,"featured_media":784244,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2112405715339948252","_sma_facebook_post_id":"191437357620492_2242943766526022","_sma_instagram_post_id":"18378767719238845","_sma_x_attempts":1,"footnotes":""},"categories":[9874],"tags":[26798,20380,26797,9818],"class_list":["post-879626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-bera","tag-botswana","tag-gfl","tag-raf"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/879626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=879626"}],"version-history":[{"count":22,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/879626\/revisions"}],"predecessor-version":[{"id":879662,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/879626\/revisions\/879662"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/784244"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=879626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=879626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=879626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}