Botswana: Analysts Warn of High Fuel Prices

Analysts have warned that the economy is no longer capable of absorbing uncomfortably high fuel prices. They are particularly concerned that they National Petroleum Fund (NPF) that is used to subsidise fuel prices by the government has been massively depleted.

“The danger is that should this happen, all commodities that are affected by transport will subsequently increase. This would drain disposable income for most consumers,” said Rapitsenyane. “At this stage people will be prompted to call for increases in salaries and wages.” In February this year, government announced a marginal salary increase of eight percent across board for all civil servants. Rapitsenyane warned that fuel price increases would not stop immediately as long as the political turmoil in the Middle East continues.
All Africa