FUEL SUPPLY SHORTAGES PREVENTABLE – BUT MAY COME AT A COST

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FUEL SUPPLY SHORTAGES PREVENTABLE – BUT MAY COME AT A COST
FUEL SUPPLY SHORTAGES PREVENTABLE – BUT MAY COME AT A COST

Africa-Press – Eswatini. Fuel supply shortages in the country can be avoided, but this may come at a significant cost to both businesses and consumers, Business Eswatini (BE) has warned on March 30, 2026.

The business body has raised concern over the possibility of looming fuel supply disruptions, noting that its members who are among the largest consumers of fuel, would be the first to feel the impact. This, it said, would quickly extend to the public transport sector and ultimately affect the broader economy.

Business Eswatini commended oil companies operating in the country for their resilience and commitment, particularly during challenging periods such as recent social unrest. Despite risks to infrastructure and operations, the companies continued to supply fuel, helping to keep the economy running.

However, BE highlighted that the current situation presents a different challenge. It noted that oil companies have been absorbing rising procurement costs for some time, a situation that is no longer sustainable due to mounting financial pressure.

Fuel prices from regional suppliers, particularly in Mozambique and South Africa, have increased steadily, while Eswatini’s regulated fuel price structure has remained unchanged.

“Fuel remains available within the region, and supply can continue, provided oil marketing companies are able to purchase it at prevailing market rates,” BE stated.

Current estimates indicate that procurement premiums range between E5.00 and E9.00 per litre above previous price levels. Should these conditions persist, fuel prices in the country could rise sharply, placing strain on both businesses and households.

The organisation cautioned that a sudden increase in fuel prices would likely drive up the cost of living and business operations, with wider implications for inflation and economic stability.

To address this, BE suggested that government may need to explore intervention measures to cushion consumers. It pointed to examples within the SADC region, where some governments have introduced targeted subsidies and temporary adjustments to fuel-related levies.

BE has since called for urgent engagement among key stakeholders, including government, fuel suppliers, business representatives and consumer bodies, to find balanced and practical solutions.

“While the situation is complex, early and coordinated intervention could help mitigate the risk of supply disruptions and limit broader economic impact,” the organisation noted.

Business Eswatini emphasised that delayed action could worsen the situation, leading to rising premiums and increased uncertainty.

The organisation has urged all stakeholders to act swiftly to safeguard the country’s fuel security and economic stability, warning that the window for effective intervention is narrowing.

It stressed that decisions taken now will play a critical role in shaping the resilience of the economy in the months ahead.

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