Botswana’s centralised fuel procurement model is facing pressure as supply shortfalls leave international oil companies (IOCs) struggling to meet customer demand while absorbing rising distribution costs.
Chairman of the International Oil Companies, Sesupo Wagamang, said in a statement that companies remained accountable for fuel availability despite having limited control over the 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,” he said.
Industry figures indicate that Botswana Oil Limited (BOL) supplied approximately 70 percent of the fuel volumes nominated by IOCs for September 2026, leaving a 30 percent shortfall.
The government’s 90 percent fuel import mandate, introduced in April 2024, places BOL in charge of importing 90 percent of Botswana’s fuel requirements, while reserving the remaining 10 percent for citizen-owned oil companies.
Industry figures indicate that transportation costs have risen by up to four times per load compared with normal arrangements, under which fuel would ordinarily be sourced from Gaborone.
The policy aims to strengthen national fuel security, improve import coordination and maintain strategic reserves.
However, petrol imports in September 2026 declined by an average of 27 percent compared with the monthly average recorded between January and August, highlighting growing supply constraints.
Meanwhile, on the international developments,the supply challenges come amid wider disruptions to international energy flows. At a meeting in Riyadh, Saudi Arabia on 12 October, OPEC+ ministers warned that shipping and insurance costs had risen to more than 33 percent of the value of some commodities, hindering the movement of crude oil and petroleum products and adding to inflationary pressures. The ministers attributed the increases to vessel shortages, military risks and route closures, with costs on some routes rising five- to tenfold.
Reports indicate, it took place on the sidelines of the 17th International Energy Forum ministerial meeting and the 25th WPC Energy Congress. The OPEC+ warning supprts Wagamang’s concerns by showing that fuel supply challenges are not only local but are also being driven by global disruptions. Rising shipping and insurance costs can increase import and distribution expenses, putting further pressure on oil companies’ profitability and their ability to maintain reliable fuel supplies.
Meanwhile, in the local space, the shortages alluded to by Wagamang have also increased distribution costs, particularly in southern Botswana, where companies have had to transport fuel from northern supply points.
Industry figures indicate that transportation costs have risen by up to four times per load compared with normal arrangements, under which fuel would ordinarily be sourced from Gaborone.
The industry also recorded a cumulative supply shortfall of approximately 20% against IOC demand during the first year of the import mandate.
Wagamang said supply disruptions were affecting operational efficiency, profitability and customer relationships.
While the industry supports the government’s objective of strengthening national fuel security, he stressed that the system must deliver consistent availability across the country.
“Fuel security must ultimately translate into reliable availability of product across the country,” he said.
The government has previously argued that centralised procurement reduces Botswana’s exposure to international supply disruptions and strengthens strategic reserves.
Meanwhile, Botswana has received its first petroleum shipment from Oman, marking a new development in efforts to diversify fuel supply routes.
Nevertheless, recurring shortages have raised concerns about whether the current arrangements are consistently meeting market demand.
Meanwhile, Botswana has received its first petroleum shipment from Oman, marking a new development in efforts to diversify fuel supply routes.
BOL confirmed that the cargo, supplied by OQ Trading, an Omani energy trading company, arrived through Mozambique’s Port of Matola on 9 October 2026.
The shipment introduces an alternative supply channel as Botswana seeks to reduce dependence on existing routes and build a more resilient fuel distribution system. The industry is calling for closer coordination between government, BOL and oil companies to address supply bottlenecks, improve demand fulfilment and ensure fuel security translates into reliable availability at service stations.
