Times Of Swaziland: ANOTHER DIESEL PRICE DROP, PETROL UNCHANGED

ANOTHER DIESEL PRICE DROP, PETROL UNCHANGED
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Mmeli Mkhwanazi  on 08/06/2023 13:19:00


MBABANE – The price of petrol remains unchanged despite a reduction of same in
neighbouring South Africa.
The Ministry of Natural Resources and Energy issued a statement yesterday,
announcing that the price of diesel will go down by E1, while illuminating
paraffin is set to be cheaper by 50 cents, with effect from midnight today. In
the statement, the ministry said the price decrease for diesel 50ppm and
illuminating paraffin was as a result of a weaker demand of the products in the
international markets. As a result, both products are carrying an over recovery
or profit, hence the need for a price decrease. On the other hand, the ministry
stated that petrol was still carrying a deficit due to that its price has, in
the past two months, has been kept constant yet the situation warranted an
increase.
Furthermore, the ministry stated that in the month of May 2023, Brent crude oil
prices dropped due to weaker global markets and the slower than expected
recovery of the Chinese economy, after the lifting of the quarantine
restrictions. The Brent crude oil price traded at an average of US$77.15 (E1
472.90) a barrel compared to an average of US$79.15 (E1 510.72) a barrel
realised in the month of April 2023.
Averaged
The Lilangeni/Dollar exchange rate weakened and averaged E18.91 in May 2023 as
compared to the E18.13 realised in April 2023. These latest fuel adjustments
mean unleaded petrol (ULP 95) price will remain unchanged at E20.80 per litre
while diesel 50ppm price will decrease from E21.60 to E20.60. Illuminating
paraffin will also reduced from E15.75 per litre to E15.25. The ministry further
encouraged the public to practise fuel efficiency as the international oil
markets and the Lilangeni/Dollar exchange rate remained highly volatile. After
the latest developments were officially posted on social media pages, consumers
made their feelings known in several posts. Both Facebook and Twitter users
registered their dismay with regard to petrol price remaining constant.
At the same time, diesel and paraffin users were ecstatic as this meant they
would not be digging deeper into their pockets. “This is becoming too much as
unleaded petrol prices remain unchanged for the third time in a row. The problem
is that decisions made at the top are made by people who use diesel, but they
affect petrol users,” read one of the posts on Facebook.
Another diesel user thanked government for the decrease, saying it would go a
long way in saving their money whenever there was a need to refuel. Another
diesel user only commented with, ‘Hallelujah’ excitedly. Meanwhile, Eswatini
Consumer Forum’s Mandla Ntshakala said this was good news as it meant that
other basic commodity prices would not increase.
Looming
“Since load-shedding is looming, this will be good since most people will opt
to use diesel powered generators other than petrol. So I think this is good for
consumers, although once the demand is high for diesel, the prices will be hiked
once more,” he said. It is worth noting that the last time petrol and diesel
prices were hiked was on March 2 2023. Unleaded petrol 95 increased by 80 cents
per litre, while diesel 50 ppm prices remained unchanged. This was as a result
of the high increase in international petrol prices coupled with a weaker
Lilangeni and Dollar exchange rate.