Maseru, March 12 — The Petroleum Fund and Central Bank of Lesotho (CBL) has assured Basotho that there is currently no shortage of fuel in the country despite growing global tensions affecting oil supply.
Head of Projects at the Petroleum Fund, Mr. Teboho Molantoa, said the Fund is responsible for ensuring that Lesotho always has adequate petroleum supplies.
He noted that concerns about fuel shortages have emerged following escalating tensions involving Israel, Iran and the United States of America which began around February.
Mr. Molantoa emphasised that Basotho should remain calm, as there is currently no indication that the country is running out of fuel.
He explained that Lesotho imports 100 percent of its petroleum products, mainly through Durban in South Africa and Mozambique. However, he noted that the distance from these supply points can pose challenges.
“If supply from the usual sources becomes difficult, the country may have to source fuel from other markets, which could increase costs because the fuel would have to travel longer distances,” he said.
Mr. Molantoa also indicated that global oil prices have already increased, largely influenced by international demand and geopolitical tensions.
Ms. Nts’eliseng Qopana, Senior Portfolio Manager at Central Bank of Lesotho said the movement of fuel tankers transporting petroleum into the country has remained high.
Ms. Qopana explained that global oil prices are influenced by geopolitical factors, noting that Saudi Arabia is one of the largest suppliers of oil to South Africa.
She added that if tensions in the Middle East escalate further, prices of commodities imported from the region, such as gas and fertilisers, could increase, which would eventually affect production costs and transport.
“If such developments occur, banks may be forced to respond through adjustments such as interest rate increases,” she said.
However, Ms. Qopana reassured Basotho that they should not panic when fuel prices rise, noting that conflicts around the world often have ripple effects on global markets.
Mr. Rets’elisitsoe Mabote, Economist said rising fuel prices could also push up transportation costs, which may in turn affect the overall cost of living.
He explained that inflation is monitored monthly, and the Central Bank assesses economic conditions before making decisions on whether to adjust interest rates.
“We expect inflation figures a month before making decisions, and at this stage we do not foresee an immediate increase in interest rates,” he said.
Meanwhile, Head of Operations Petroleum Fund, Mr. Lebohang Makhoali said part of the Fund’s mandate is to help stabilise fuel prices in the country.
He noted that while global fuel prices have increased, the Fund is working to ensure that any adjustments remain manageable for the public.
“We want to assure Basotho that efforts are being made to ensure that any fuel price increases remain reasonable and do not place a heavy burden on the public,” Makhoali said.
Ends/MAMAJ/tl
