FAQs

In developing the Botswana Oil Limited brand, the country of origin was taken into account as this company is for Batswana. The importance of rain to Botswana is widely known and appreciated. Oil, on the other hand, is a lesser understood commodity, it is to this end that the logo includes:

Botswana Oil Limited (BOL) is mandated:

• To ensure the security and efficiency of the supply and distribution of petroleum products such as diesel, petrol and paraffin in Botswana.
• To manage Government owned strategic fuel reserve facilities including strategic stocks. BOL manages depots developed by the Government as well as stock that has been sourced on behalf of the Government. Construction of the facilities is carried out by Government and then they are handed over to BOL for management.
• To be the Government of Botswana’s transformational agent in the oil and gas industry
• To facilitate citizen participation in the petroleum sector. To achieve this, BOL works with Citizen Owned Oil Companies (COOCs) which are active in the petroleum sector to ensure that they meaningfully contribute to the industry. This could be through COOCs sourcing product from or selling product to Botswana Oil Limited. BOL also leases fuel storage space to COOCs, trains, coaches and mentors them on the industry.

BOL aims to achieve its strategic objectives by ensuring:

• Procurement and securing of fuel supplies on behalf of the Botswana Government.
• 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.

Currently, BOL offers diesel 50PPM, ULP93 and ULP95

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

Currently BOL sources fuel 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.

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 181 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 coal.
• The planned construction of a Liquefied Petroleum Gas plant in Palapye.

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 Companies (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.

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.

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

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.