Lesotho is set to break free from the uncertainties of fuel supply disruptions, as the long-awaited fuel reserve facility is finally poised for construction.
In the 2026/2027 fiscal year, the Lesotho Petroleum Fund will begin building the nation’s first fuel reserve, to be located at Maqhaka, in Berea district, following this week’s confirmation by the Petroleum Fund about the ongoing technical studies, and securing of the land for the project.
The land acquisition process was facilitated with the help of the Ministry of Energy and a consultant who worked with Maqhaka’s affected residents.
The Petroleum Fund allocated M4 million to the Ministry and consultant to compensate the landowners whose properties are being used for the reserve facility and the access road from the Main South 1 Road.
The compensation covered 35 residents, including those with land along the access road leading to the site.
Rorisang Mahlo, the Public Relations Officer for the Petroleum Fund, highlighted that the fuel reserve is just one of several vital infrastructure projects being planned for Lesotho.
Alongside the Maqhaka reserve, the Fund plans to build two additional fuel distribution depots: one in Botha Bothe for the northern region and another in Mohale’s Hoek for the southern region.
Nthomeng Seephephe, Principal Energy Officer at the Ministry of Energy, emphasised that the Maqhaka facility will serve the central regions of Lesotho, including Maseru and Thaba-Tseka, while depots in Mohale’s Hoek and Leribe will serve the southern and northern regions, respectively.
“The project is designed to mitigate potential fuel supply disruptions and ensure Lesotho’s energy security. This is a strategic intervention to stabilise fuel prices and secure a constant supply, reducing the impact of issues in South Africa on our fuel availability,” Seepheephe said.
Lesotho’s reliance on South African oil supplies has long been a source of vulnerability. Supply disruptions in South Africa, caused by factors like truck protests or refinery issues, often leave Lesotho facing fuel shortages and price hikes. In response to this, the Southern African Customs Union (SACU) has urged member nations, including Lesotho, to build their own fuel storage facilities to safeguard against such challenges.
The idea for a national fuel reserve has been in the works for over a decade, but the project faced several setbacks, including the exclusion of the Department of Environment during the initial stages. However, progress is now being made, and the project is on track for completion in the 2026/27 period.
Seepheephe acknowledged that the necessary preparations are still ongoing, including finalising the design for the Maqhaka site. Once the design is complete, the project will be advertised, and construction will commence. Although the national fuel reserve was not included in the financial plan for 2025/2026, it will be a priority in the 2026/27 budget.
In her budget speech on February 19, Finance Minister Dr Retšelisitsoe Matlanyane outlined the government’s efforts to establish the National Strategic Fuel Reserve Facility at Maqhaka. She confirmed that an Environmental and Social Impact Assessment (ESIA) has been completed, and compensation for landowners is well underway.
“This project is crucial for securing a minimum level of fuel reserves and ensuring that Lesotho can continue functioning economically in the face of future fuel supply disruptions,” Dr. Matlanyane stated.
In a recent engagement with Maqhaka residents, the Petroleum Fund held a financial education session to guide the 35 individuals whose land was acquired for the fuel reserve. The compensation payments ranged from M22 000 to M400 000, depending on the size of the land.
Despite the compensation, some Maqhaka residents, such as Mofana Matane, expressed concerns about the government’s approach. Matane suggested that a community-driven project would have provided longer-term benefits, rather than offering short-term financial assistance.
Maqhaka’s member of community council, Tumelo Leboto, however, urged the community members who received compensation to invest in local businesses and explore economic opportunities tied to the fuel reserve construction project. He emphasised that this could create lasting economic benefits, beyond temporary jobs, for the community.
“With M4 million invested in our community, we should aim to develop businesses and entrepreneurial initiatives that will strengthen our local economy,” Leboto said. “This project offers an opportunity for our community to grow and benefit in the long run.”
Seabata Mahao is a general news reporter with special focus on Business and Sports.
Started working at Newsday in 2021.
has an Associate Degree in Journalism and Media.
