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Ministry of Minerals, Energy and Water Resources (MMEWR)
Update on the Current Fuel Supply Situation Botswana
22/12/10
Update on the Current Fuel Supply Situation Botswana The public is informed that the planned maintenance of the SASOL refinery was completed on the 15th November 2010. Unfortunately, the Engen refinery in Durban is still out of operation and is expected back on stream by February 2011.

 

1.    The public is informed that the planned maintenance of the SASOL refinery was completed on the 15th November 2010. Unfortunately, the Engen refinery in Durban is still out of operation and is expected back on stream by February 2011.

 

2.    The Caltex, Total, Shell and BP refineries (CALREF and SAPREF) did not undergo any shutdown and continue to operate as usual.

 

3.    Products destined for the Botswana market are transported by pipeline from Durban to Johannesburg into Tarlton Depot. Currently, the pipeline is operating at 80% of its capacity.

 

4.    The unavailability of products from the Engen refinery in Durban and loss of pipeline capacity by 20% has resulted in reduced supplies into Botswana from 16 million to 10 million liters per week since October 2010.

 

5.    In order to address  this supply shortfall, the Ministry in conjunction with the Oil Industry  have;

 

5.1         Agreed on a coordinated approach in distributing the available product within the country to ensure equitable supply. For instance, two companies can share a truck for delivering products in the same vicinity.

5.2         Managed to procure 1.2 million liters of diesel and 900, 000 liters of unleaded petrol from the Republic of South Africa which is expected to arrive today and tomorrow (21 and 22 December 2010).

5.3         Managed to procure 5 million liters of diesel from the National Oil Company of Mozambique which is expected to arrive on Friday 24 December 2010.

5.4         Agreed to cooperate and procure products from alternative sources of supplies. E.g. Mozambique and Namibia.

5.5          Agreed on extended times to load trucks to allow for more product uplifting from Government Storage depots to Filling Stations.

 

 

6.    In addition, the Government is in the process of procuring 25 million liters from other suppliers, the product is expected in two weeks time.  

 

7.    Taking into account that the Government maintains two strategic depots in Francistwon and Gaborone, the oil companies have been allocated a total of 11 million liters so far, (5 million liters of diesel and 6 million liters of petrol). This will normalise the situation since the turn around time for trucks will be reduced. With effect from this morning, the oil companies have been drawing from the reserves and are distributing to filling stations.

 

8.    As a result of these interventions, the supply of diesel has been restored in the country. In addition, some parts of the country, especially the Francistown area are showing significant improvement in supply. We expect that by the end of today most filling stations especially around Gaborone and Francistown will have fuel.

9.    Other parts of the country will start showing significant improvement in supply from tomorrow.

 

10. We continue to see signs of stockpiling from the public, despite several attempts by the Ministry to advise the public to desist from doing such. The continual stockpiling of fuel worsens the situation and causes unwarranted delays at filling stations. Furthermore the use of plastic containers to carry fuel is discouraged, as they are unsafe and pose additional danger to other road users.

 

11. Therefore, the public is advised to stop “panic buying” as there is adequate fuel available in the Botswana market.  We are currently working with Oil industry to improve logistical arrangements for transporting the fuel in the country.

 

12. In the medium to long term the Government is also in the process of setting up the National Oil Company whose main purpose will be to ensure security of supply and fuel availability in the country.

 

13.                The public is encouraged to use the available petroleum resources prudently and employ fuel saving measures. The public should therefore remain calm, as Government is doing everything possible to ease the supplies situation.

 

14. The Ministry is monitoring the situation and will respond as and when required. The public will be updated regularly of the situation as it evolves. 

 

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