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Money Part of: Petrol R30 · 11 stories

Why does petrol cost about R8 less in Botswana when South Africa sells them the fuel?

The viral prices were wrong, but the real gap is still big enough to fill a tank for about R400 less. Part of the reason is taxes. The other part is a government fund under pressure.

By Craig Edwards

Trucks parked beside a Shell petrol station at Ledumadumane in Botswana

Photo: Masedi Nonofo / Wikimedia Commons, CC BY-SA 4.0

Key points
  • A full tank in Botswana costs about R400 less than here
  • South Africa sells Botswana most of its fuel, then pays more for it
  • Botswana's price cushion is paid by a fund that is bleeding money

R7.46.

That is how much tax and levies sit inside every litre of petrol you buy in Gauteng. In Botswana, a driver pays about R8 less per litre overall. And Botswana gets most of its fuel from us.

So South Africans are typing the same question into Google: "Why is Botswana fuel cheaper than SA?" Google's answer points to lower taxes and government subsidies. Here it is.

Google's AI answer to "Why is botswana fuel cheaper than sa", saying lower taxes, duties and levies plus Botswana government subsidy interventions
Google's short answer. The real story has numbers behind it, and one cost it leaves out.

A post on X by @LCabonena on 11 October put the topic in front of 252,800 people. It said Botswana buys fuel in South Africa, and it listed Botswana prices that looked unbelievable.

What do drivers in Botswana really pay for petrol and diesel?

The post said Botswana petrol costs R14.50 a litre and diesel R14.34. It put South Africa at R29.95 and R31.95.

Our side is close. Inland 95 petrol has been R30.25 since 7 October, and R29.38 at the coast. Wholesale diesel is R31.95 inland, which matches the post.

The Botswana side is not close. The country's fuel regulator, the Botswana Energy Regulatory Authority (BERA), set petrol 95 at P18.21 a litre and diesel at P20.93 on 7 July. Those are pula, Botswana's money. A price tracker still listed the same figures on 5 October.

One reply in the thread said it plainly: "It's R21.86." That reply was right.

The pula is worth about R1.20 to R1.24. At those rates, here is the real gap.

Fuel Botswana (BERA, per litre) Botswana in rand South Africa (inland) You save per litre
Petrol 95 P18.21 R21.85 to R22.58 R30.25 R7.67 to R8.40
Diesel P20.93 R25.12 to R25.95 R31.95 (500ppm wholesale) R6.00 to R6.83
Paraffin P18.33 R22.00 to R22.73 Not checked Not checked

Botswana prices: BERA, in force since 7 July 2026 and still listed on 5 October. Rand at R1.20 per pula (indicative rate used by JoburgETC on 12 October) and R1.24 (a mid-market rate on a currency site). South Africa, official prices from 7 October.

What 1 litre of 95 petrol costs, in rand
Botswana (viral post)R14.50
Botswana (real)R21.85
South Africa coastR29.38
South Africa inlandR30.25

Botswana real price: P18.21 at R1.20 per pula. Sources: BERA, Department of Mineral and Petroleum Resources, October 2026.

Fill a 50-litre tank and you keep about R380 to R420 in Botswana. The viral numbers would have made that R790.

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Those figures look like old prices. Botswana raised petrol by P5.05 a litre on 28 March.

How much of South Africa's price is tax?

Of our R30.25, only R17.44 is the fuel itself, shipped here. Remember that number.

The rest is on our own price sheet. We took that sheet apart line by line. The government-set parts of a litre of 95 add up to R7.46.

  • General fuel levy and customs: R4.33
  • Road Accident Fund levy: R2.25
  • Slate levy: R0.88

The slate levy is a debt tab for past price lags. The Road Accident Fund says it is insolvent, yet it takes R2.25 from every litre. Our look at why the government will not cut the fuel levy shows why none of this moves.

Now the surprise. Botswana buys much of its fuel through South Africa. One report says about 90% comes from us, with the rest from Mozambique and Namibia.

Take our R17.44 for the fuel itself. Botswana's pump price in rand is about R21.85. That leaves roughly R4.40 for the trucks driving it north, the station's cut and Botswana's own taxes. That is our sum, not an official figure. It shows how little room is left for tax.

Does Botswana really subsidise its fuel?

Yes. Botswana has a National Petroleum Fund. It soaks up the shock when oil jumps, so pump prices rise slower than the world price.

When the Middle East conflict hit in March, Botswana's government says Brent crude rose 38% in a month. Reports say the country held its own increases to an average of 37%, while world fuel prices rose between 60% and 111%.

The fund covered the difference. Botswana reports say it was paying around P250 million a month (about R300 million) to cushion prices in the lag before each change.

Then the government went further. Bloomberg reported that Botswana suspended its fuel levy, road levy and security-of-supply levy for six months. Together they came to P2.45 a litre on petrol, close to R3.

If those levies return, Botswana petrol would rise by about R3 and the gap would shrink to about R5. We could not find a report saying whether the suspension was extended after early October.

Is Botswana's fuel fund running out of money?

Here is the twist. Some Botswana voices say it is in trouble.

The ministry told Parliament the fund was under growing pressure. One report said it paid out P262 million in three months and still owed oil companies P350 million. A former minister, Bakang Seretse, says the unpaid gap reached P1.2 billion. He says a fund cannot hold prices down for long and that prices must be adjusted on time.

Another report quotes the current minister saying only P49 million was left in a strategic fund. The date of that quote was unclear, so treat it as a sign, not a current balance. Rush hour traffic in Gaborone, Botswana

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So Botswana's low price is partly a bill someone has not paid yet. In July, BERA said it would keep watching markets and adjust prices as needed.

Why do South Africans pay more at the pump?

Look at the structure. South Africa keeps R7.46 in levies as a fixed layer. Botswana has been switching its levies off when prices spike.

Google's answer is half right. What it leaves out is that the cushion is paid by a fund under strain.

Then there is the oil itself. In October our increase was driven by Brent crude rising from $87 to $101 a barrel, with the rand averaging R16.21 to the dollar. Botswana faced the same oil. It chose to soak up more of the hit.

Our own petrol price forecast for next month points to another rise on 4 November. And the reason we are so exposed is that we only make a fraction of what we burn, as our story on South Africa making just 39% of its fuel shows.

Trucks parked beside a Shell petrol station at Ledumadumane in Botswana
A truck park beside a Shell station in Botswana. Most of the country's fuel arrives by road from South Africa.

Photo: Tshenyano K / Wikimedia Commons, CC BY-SA 4.0

Can South Africans fill up in Botswana?

Fuel in your car's own tank is the easy part. Fuel in jerry cans is where trouble starts.

We found no official limit on petrol in your own tank when you cross the border. Fuel carried in containers is different. Travellers report that customs can tax it. The Road Freight Association was quoted in 2026 saying that carrying more than the vehicle's own tank needs falls under customs import rules and duties.

Botswana's rules matter too. A 2024 report said people could import up to 200 litres a month for personal use without a licence. We could not confirm that rule is unchanged.

Supply is the other catch. Business Weekly ran a story in May headed "Minister confirms looming fuel shortage" and reported that South African refineries might struggle to supply Botswana in some months. A cheap pump is no use if it is dry.

For a weekend in Gaborone, a full tank could cost about R400 less. No wonder one reply in the thread said to "normalise weekend getaways to Bots."

What do people say the real reason is?

The replies split into camps. Some blamed the ANC. One said "we have so many levies our neighbours don't, even Eswatini is low." Another said Botswana can afford it because its population is small.

So the next time you watch a pump in Botswana click past R22 a litre, ask who is paying the other R8. It may not be only Botswana's government.

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Sources9
  1. The original post on X by @LCabonena (11 Oct 2026)
  2. Botswana Daily News (BOPA), BERA fuel price cut from 7 July 2026
  3. GlobalPetrolPrices, Botswana pump prices listed 5 October 2026
  4. JoburgETC, South Africa vs Botswana petrol prices (12 Oct 2026, R1.20 per pula)
  5. Carmag, confirmed South African fuel prices for October 2026
  6. Business Weekly (Botswana), National Petroleum Fund absorbs March under-recoveries
  7. Botswana Ministry of Minerals and Energy, Fuel Supply Update, 26 March 2026
  8. Bloomberg Tax, Botswana halts fuel levies for six months
  9. Kweli, Botswana diesel price 2026 and the levy suspension

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