FAQs

These are the Frequently Asked Questions (FAQs) that were discovered from the Communication Strategy survey that the Petroleum Fund undertook.

  • Petroleum products that Lesotho imports are:
    1. Petrol93
    2. Petrol95
    3. Diesel50
    4. Illuminating Paraffin
    5. Liquified Petroleum Gas (LPG)
    6. Jet Fuel
    7. Lubricants
  • Petrol and diesel are used to fuel vehicles and for power generation.
  • Illuminating Paraffin is used for domestic purposes such as cooking and lighting.
  • Jet Fuel, also known as aviation turbine fuel (ATF), is primarily used to power gas-turbine engines in aircraft, including commercial jets, military aircraft, and helicopters.
  • Lubricants are used to reduce friction between surfaces in contact, thereby minimising wear and tear, and facilitating smoother operation of machinery and equipment
  • Lesotho does not have national storage facilities but individual Oil Companies have their own storage facilities.
  • However, a Feasibility Study on the Construction of a National Strategic Fuel Storage Facility has been concluded, and once all bureaucratic considerations have been made, Lesotho like other countries, shall have its own Storage Facility, with two regional (North and South) depots, to anticipate periods of crises.

In the SACU region, the formula that is used is the Basic Fuel Price (BFP), which is an Import Parity Principle that is based on international refinery prices of crude oil in the Middle East, Europe and Singapore. In addition to the BFP, other elements are included in Lesotho’s pricing. The elements are as thus:

–       Depot Storage Handling

–       Road Delivery

–       Road Maintenance Levy

–       Oil Levy

–       Petroleum Fund Levy

–       Motor Vehicle Accident (MVA) Levy

–       Duty

–       Industry Margin
Import Parity

No, importing petroleum products without proper authorisation is illegal under the Fuel and Services Control (Importation of Petroleum Products) Regulations of 1999. Only registered suppliers approved by the Department of Energy are permitted to import petroleum products. Violating this regulation can lead to severe penalties, including fines or imprisonment.

If you suspect you’ve been overcharged for fuel, be sure to keep your receipt as proof and report it to the Petroleum Fund. This reporting will allow the Petroleum Fund to assist you in reclaiming any excess charges, provided it’s determined that the dealer overcharged you.

The Petroleum Fund sets standardised prices for diesel, petrol (both grades), and illuminating paraffin. All fuel dealers must adhere to the monthly prices as published in the Gazette. If a dealer does not comply, the public is encouraged to report this by calling our toll-free number (80022004) for an action to be taken.

Petrol 93 and 95, Diesel 50 and Illuminating Paraffin (IP).  Petrol and diesel are used respectively for fuel vehicles and power generation, while IP is used for domestic purposes (cooking and lighting).

Approximately the average volume of petroleum products consumed monthly is 17 million litres.

Lesotho does not have national storage facilities, but individual Oil Companies have their storage facilities.  That being said, a Feasibility Study on the Construction of a National Strategic Fuel Storage Facility has been concluded, and the Environmental and Social Impact Assessment (ESIA) has been completed. The community is being compensated for the identified land to establish the storage facilities. Once payments are completed, the project will move to the next phase of engaging a contractor to establish the infrastructure. More information can also be found on the website for DoE ( https://www.doe.gov.ls/post/view/34 ).

Approach the Ministry of Energy and Meteorology, in the Department of Energy, and the Ministry of Trade for licensing and regulation, in general.

Lesotho Energy Policy 2015-2025

Fuel and Services Control Act of 1983

Fuel and Services Control (Importation of Petroleum Products) Regulations, 1999

The Fund’s Strategic Plan 2020 – 2025 and Annual Corporate Plans

All environmental matters related to petroleum products and services are handled in line with the Natural Environmental Policy and Legislation.  This handling takes into account the application and licensing of a business, including monitoring and compliance during operations.

During 2022-2023, the Petroleum Fund will conduct a Feasibility Study on Used Oil, examining the impact of used petroleum products on both the environment and public health. The study will also explore effective waste management strategies to safeguard the environment while creating business opportunities for Basotho through this environmental protection initiative. The report is also available on the Petroleum Fund’s website ( https://petroleum.org.ls/download/feasibility-study-for-recycling-of-used-oil-in-lesotho/ )

Following the conclusion of the Transactional Advisory Services Consultancy and the Feasibility Study on its recommended projects, Basotho will have the opportunity to invest in Mobile Filling Stations and Automated Dispensing Machines for Paraffin at places/ locations that have been evaluated for viability.  Funding models for these projects will soon be canvassed with local financial and development partners to assist Basotho in accessing finances to embark on this initiative.

Currently, the Fund does not have internship programmes or scholarships.  However, the Fund has responded to the Government of Lesotho’s call to equip Basotho with the relevant skills and experience by onboarding a temporary employee under the said programme.

Over and above the consistent exposure measures that the Fund affords, its staff, the organisation has also begun drawing up programmes for the capacitation of Petrol Attendants at Filling Stations on how to render professional services and comply with the Safety, Health, and Environmental Standards.  The Fund has also agreed with the Dealers that localisation of maintenance of all equipment on the Forecourt should be mandatory.  This initiative is yet to be pursued further. The Fund will devise other mechanisms for Basotho to be educated in petroleum-related material.

The Petroleum Fund engages in Social Responsibility initiatives that focus on the following:

Human Development

Children who are in difficult circumstances, the elderly and persons with disabilities;

Vulnerable persons such as caregivers, orphaned and vulnerable children (OVC);

Very sick people who cannot look after themselves and are unemployable.

Social Development covers the support for the poor, marginalised and vulnerable groups to access basic social services and benefits.

Environmental Protection that covers the development and preservation of the environment for the benefit of future generations

Economic Development covers the development of small infrastructure facilities, particularly in the poor, marginalised and vulnerable communities.

Cultural Heritage: This covers the support for projects and activities which are aimed at promoting the Basotho culture and historical heritage.
The above is covered by the Fund upon request from indigenous Basotho and entities in areas of development aimed at reducing poverty, hence contributing to the development of the country’s social and economic sectors.