With effect from tomorrow, all three main fuel products will increase by E3.43 per litre.
The products are paraffin, diesel and petrol.
Ministry of Natural Resources and Energy Principal Secretary Lindiwe Mbingo said the latest increase was a result of escalated global fuel price surges and global supply disruptions, with crude oil prices trading at an average of E1 650.36 (US$102) per barrel in September, compared to an average of E1 436 (US$89) per barrel realised in August.
Mbingo said the sharp escalation was driven by persistent geopolitical tensions, which have resulted in restriction of shipping traffic through the Strait of Hormuz and Bab al-Mandab Strait, alongside Ukrainian attacks on Russian refineries which have resulted in global fuel supply challenges, escalating security and insurance costs. “The lilangeni/dollar exchange rate slightly depreciated and averaged E16.18 in September, compared to the E16.14 realised in August,” she said.
The PS said the prices of unleaded petrol, diesel 50ppm s and illuminating paraffin will increase by E3.43 per litre. She said the new prices shall come into effect at midnight today and become effective tomorrow.
The price of unleaded petrol (ULP 95) will increase from E25.97 per litre to E29.40 per litre, while the price of diesel (0.005% S) will increase from E28.85 per litre to E32.25 per litre.
Illuminating paraffin will increase from E21.73 per litre to E25.16 per litre. Mbingo encouraged the public to use fuel efficiently as the international oil markets and the lilangeni/dollar exchange rate remain volatile.
Meanwhile, the Minister of Natural Resources and Energy Prince Lonkhokhela said tensions in the Gulf region continued, which was evident in the petrol hikes.
He said petrol was being hiked because it comes from the Middle East. Since there were wars along the Strait of Hormuz and Bab al-Mandab, the commodity was not being exported like before.
He said when there is a war, things become expensive, stating that the boats that transport the goods were being restricted.
He said the price of a barrel of petrol has increased drastically from US$89 in August to US$106 in September. He said these were the conditions causing the petrol hikes globally, not just in Eswatini.
Despite the hikes, government has done a lot in terms of cushioning the price because the cost of petrol should have long been hiked. He said due to government putting in funds to cushion the public, the hikes were being cushioned and were lesser compared to other countries.
He said they have already released E613 million since April, which means that the highest they have paid in one month was E147 million and the lowest was not less than E90 million per month.
“This is challenging to the nation because it influences the inflation rate. Prices increase since many things are influenced by energy, which concerns government. On Tuesday, we were in Cabinet, we discussed how we can work around the price since it was exorbitant. We had to make calculations and had lengthy engagements, in attendance were the ministry’s officials,” he said.
He said the prices of basic commodities would increase as the cost of fuel had hiked.
However, the minister noted that government would cushion the hike so that the nation is not severely affected. He said from the Fuel Strategic Oil Reserve Fund (Fuel Stabilisation Fund), government has funds that would last for the next three to six months depending on the prices.
“Otherwise kunebulukhuni. The whole world is concerned mainly because the prices of diesel and fertiliser were the most affected. The minister of agriculture was aggrieved in Cabinet because it is now the farming season and they were concerned about farmers.
The minister will definitely do something so that the impact does not become worse when it comes to farming. These are part of the things why we are having the engagements,” he said.
He noted that Cabinet applied itself fully with all ministers present. They resorted to taking the decision on the hikes after being made aware of the scenarios. He said Cabinet was not pleased with approving the hikes but did so after understanding the reasons.
“Akuchamuki kitsi. The whole world is affected and everyone is trying to do better in terms of the prices. We are asking the nation to work with us on the issue as government is trying what it can in making sure that the impact is not as bad as it should be,” he said.
