The Botswana Energy Regulatory Authority (BERA) is aiming to finalize a new pricing framework for Liquefied Petroleum Gas (LPG) by December, signaling a move to exert greater control over one of the country’s fastest-growing energy markets.
This initiative responds to mounting concerns about market concentration and the risk of anti-competitive pricing practices in the sector. Officials believe the new framework will bring greater transparency and safeguard consumers as demand for LPG rises among households and businesses alike.
Addressing editors on Monday, BERA’s Director of Economic Regulations, Batsumi Rankokwane, revealed that the authority has already drafted Terms of Reference to appoint a consultant who will help develop the pricing model. “The risk of collusion can arise and that’s why you need market regulation especially around pricing,” Rankokwane said, highlighting the dangers posed by Botswana’s LPG market, which is dominated by just five importers.
Historically, BERA has not regulated LPG prices, even as the fuel has become an increasingly vital alternative for cooking, heating, and commercial use. The sector’s steady growth reflects a shift by households and businesses toward cleaner, more efficient energy solutions amid rising electricity and fuel costs.
Botswana’s move to formalize LPG price oversight mirrors a broader trend across the region, where regulators are stepping in to shield consumers from volatile prices and promote fair competition. According to research from the International Energy Agency, LPG consumption in Africa has surged due to urbanization, population growth, and efforts to reduce reliance on biomass fuels like firewood and charcoal.
The World Bank has also underscored LPG’s role as a crucial transitional fuel for developing economies, given its lower emissions compared to traditional solid fuels. However, the institution warns that limited competition and supply chain challenges can significantly impact affordability in smaller markets like Botswana.
Botswana’s relatively small LPG market, heavily reliant on imports, primarily through South Africa, remains vulnerable to global price swings and supply disruptions.
Despite these challenges, Rankokwane noted that industry stakeholders have engaged positively with the proposed reforms, signaling a growing acceptance of a more structured regulatory environment. The forthcoming framework is expected to clarify mechanisms for price setting, cost recovery, and consumer protection.
This effort is part of BERA’s wider push to deepen regulation within Botswana’s evolving energy sector as demand shifts toward alternative, cleaner sources of power.