Government may not reduce the cost of imported commodities despite the recent reduction of fuel prices.
In a brief interview with Voice Money, the Ministry of Trade and Industry’s Trade Advisor, Phazha Buale said that generally, one would expect that the prices or cost of imported commodities would also go down, but with other economic factors at play, that is highly unlikely to happen in the short term.
“Labour costs, freight and logistics, shifting in and out costs, as well as the general supply and demand for the commodities, need to stabilize over a period of time before we can start feeling the impact of the fuel price reduction,” he said.
In the past, government has cited the rise in fuel prices as a contributor to the high cost of imported products. Botswana Energy Regulatory Authority (BERA) has been adjusting fuel prices on the basis of movement of petroleum products prices which was characterised by a decrease in international oil prices.
