Africa-Press – Eswatini. The price of fuel will rise by E2.30 per litre today.
Ministry of Natural Resources and Energy Principal Secretary, Dorcas Dlamini, yesterday announced that the new prices would come into effect at midnight.
The new prices will push unleaded petrol (ULP 95) to E23.85 per litre from E21.55.
Diesel (0.005 per cent sulphur) will increase from E22.10 to E24.40/litre. Paraffin will now be charged at E19.15 per litre from E16.85.
Dlamini explained that the hike had been influenced by volatile international oil markets situation coupled with the weaker lilangeni/dollar exchange rate.
She mentioned that crude oil prices rose to an average of US$118 per barrel in the month of June from an average of US$110 a barrel realised in the month of May.
She pointed out that the persistent increase in international oil prices was a result of persistent geopolitical tensions between Russia and Ukraine, which disrupted global oil supply.
Dlamini stated that the lilangeni/dollar exchange rate slightly appreciated and averaged E15.71 in the month of June as compared to the E15.95 realised in the month of May.
“The ministry encourages the public to use fuel efficiently as the international oil markets and the lilangeni/dollar exchange rates remain highly volatile,” she advised.
The price of fuel in Eswatini has been increasing by an average of E10 between February 2021 and today.
On February 5, 2021 the price of unleaded petrol (ULP 95) cost only E13.15.
However, fast forward to July 7, a litre of unleaded petrol will cost a motorist E23.85 after the ministry of natural resources announced seven increases between February 2021 and July 2022.
The actual difference between what was paid for a litre of petrol in February last year and today is E10.70.
Diesel, on the other hand, has risen from E13.60 during the same period last year to E24.40. This effectively means consumers will be expected to fork out E10.80 more than what they did for the same commodity during the past year.
A closer analysis into the ever-rising price of fuel by the Eswatini Observer uncovered that the steepest increase of E2.50 per litre of both diesel and petrol were recorded last month.
The spike in fuel costs effected last month saw unleaded petrol rising from E19.05 per litre to E21.55. Diesel also rose to E22.10 per litre from E19.60.
Among the five fuel increases which were implemented in 2021, the highest of E1.20 was in November. Otherwise, since February to December 2021, the hike in fuel prices did not surpass the E1 mark.
It should also be noted that Eswatini has in the past been saved by government’s cushioning.
However, in April 2022 the cushioning fund got eroded due to the persistent crude oil price increases but government came through with E80 million and subsidised the fuel prices again in June.
“Government came through for consumers and cushioned prices by E90 million. The subventions made our fuel price increases to be less than what the markets warranted,” said Dlamini.
In South Africa, the price of 93-octane petrol rose by E2.37 per litre yesterday, while diesel jumped by at least E2.30 per litre.
The shock price increase at Eswatini’s major trading partner came after government cuts its subsidy of the general fuel levy to 75 cents per litre from E1.50 previously. The subsidy had been introduced earlier this year in an effort to cushion consumers and businesses from the impact of spiralling oil prices caused by Russia’s war on Ukraine. Business Tech reported that the subsidy would be scrapped in its entirety from August, potentially pushing fuel prices even higher.
National Road Transportation Council (NRTC) Chairman Magesi Dlamini disclosed that council would convene a meeting to deliberate on the way forward today.
He acknowledged that the latest fuel increase would definitely have an impact on the cost of public transport but they were yet to deliberate on what could be the best strategy to cushion the rising costs.
“The costs are ballooning to very high levels but we hope today’s meeting will help to find a lasting solution,” said Dlamini.
The new fuel prices:
Unleaded Petrol (ULP 95) price will increase from E21.55/litre to E23.85/litre
Diesel (0.005%S) price will increase from E22.10/litre to E24.40/litre
Paraffin price will increase from E16.85/litre to E19.15/litre
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