ANOTHER DIESEL PRICE DROP, PETROL UNCHANGED

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.

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