Page 25 - issue 28 2020

News 25

>> From Page 24

In Botswana, the price of Petrol, Diesel the pipeline, rail and Tarleton S&H cost petrol 95 increases by 32 thebe per
and Paraffin is regulated. The ex-refinery to the Durban BFP, you arrive at the litre;
component of controlled prices is set on import parity price at Gaborone or the Retail pump price of diesel 500ppm
the basis of an import parity formula Gaborone BFP. Basically the total cost increases by 11thebe per litre;
known as the BFP (Basic Fuel Price). of product plus logistics costs then Retail pump price of diesel 50ppm
make the Gaborone Import Parity price. increases by 8 thebe per litre;
The BFP formula was adopted and BFP prices are calculated using month Retail pump price of illuminating
introduced on February 2005 in averages and thus the ‘correct’ price paraffin decreases by 9 thebe per litre;
Botswana. Import parity according to is not known until month-end. The Retail pump price of Jet A1decreases by
is the UN World Food Program is “the difference between the ‘correct’ price 72 thebe per litre;
price at the border of a good that is and the prevailing price gives rise to an
imported, which includes international over- or under-recovery, known as the Botswana Energy Regulatory Authority
transport costs and tariffs. Basic Fuel ‘Slate’. (BERA)explained that these price
Price is explained as what it would cost adjustments were necessitated by the
a South African importer of petrol to To the Gaborone BFP are added increase in cost of Brent crude oil which
buy the petrol from an international various duties and levies, allowances averaged US$45.02 per barrel in August
refinery, transport the product from for secondary transport and storage 2020 compared to US$43.22 per barrel
that refinery, insure the product against and handling and target margins for in July 2020. Average prices rose by
losses at sea and land the product on marketers and retailers, to arrive at retail US$1.8 per barrel or 4.16% between
South African shores. pump prices. The current gazetted price July 2020 and August 2020. The increase
of fuel in Botswana which took effect on was largely been driven by re-opening
To break it down further: the 19th September 2020 were: of most economies and anticipation of
stimulus measures in world economies.

The cost to transport the product from Retail pump price of unleaded petrol 93
Durban to Gaborone through Tarleton increases by 34 thebe per litre;
is added to the Durban BFP. By adding Retail pump price of unleaded

>> From Page 22 from procuring entities prior to site Worth noting is that the MoU on its
ERB SIGNS MOU WITH visitation for easy identification of the own is just a framework and it is my
engineering professionals proposed.
belief that relevant structures (the Joint
PPADB “This signing ceremony will now kick Working Committee in this case) will
start the operationalisation of the be set up to ensure that the MoU is
reason they had identified the Public MoU and includes the following. implemented.”
Procurement and Asset Disposal Board • To oversee and ensure that the main
as a key partner in such an instance is objectives of this MoU are In his closing remark Engineer Olaotse
that ERB has been embarking on site fulfilled. committed that Engineers Registration
visits to construction projects awarded • To provide forums for interaction to Board will think of this signing not only in
by PPADB.At these sites the ERB would discuss and advise on relevant mutual terms of what they will be able to achieve
challenges due to non-availability of processes and procedures consistent in terms of collaboration but in a much
mutual relationship with the projects with the execution of the individual wider context of generally developing
awarding body in Botswana. board mandates. official systems to allow for sharing of
These challenges are and not limited This component of the MoU has been information, engineering professional
to Information acquisition on key thoroughly interrogated and agreed regulation and ERBs position in the
engineering professionals on and the upon and acceptance to the above development of Botswana.
tender requirements and winning bid’s key elements cements a start to our
key engineering personnel’s proposal partnership.

www.engineerbw.com Issue 28 - Dec/Jan 2021