Africa-Press – Botswana. Financial analysts prediction for a lower inflation rate appears like “candle light in the wind” as prices of pump fuel prices shot up just within a week.
Last week, inflation backed down from 12.4 percent to 9.3 percent- a move that was praised to the financial markets. But on Wednesday, the fuel prices played a joy-joy gyminastics by surging up- a move that will drive more people into slacks with not pockets.
In a stamen released by Botswana Energy Regulatory Authority (BERA) pump prices for unleaded petrol 93 jerked by 95 thebe per litre while unleaded petrol 95 rose up by 95 thebe.\
Diesel 50ppm has come up to 56 thebe per litre and paraffin—the mostly use commodity by the masses and down-trodden was lifted by 72 thebe per litre.
Industry sources said this was basically a market correction following key players in the industry for their premature move to ask for fuel prices reduction early this year.
“This move is aimed at safeguarding government from exposure from international petroleum companies. Government buy from international companies at international prices and the current move was to establish parity,” a source said on Wednesday.
“Petrol will recover by 28 thebe per litre while diesel will per at 60n thebe per litre,” sources said.
Petrol prices were at P17 per litre before they were brought down to the current levels of P 14 per litre.
One of the issues cited is the ongoing geo-politics between Russia and Ukraine which are contributing to the instability in the supply chain price market. OPEC, which is the largest producing block of petroleum, is another factor. However, the outlook is that the prices will eventually come down.
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