MIXED FEELINGS OVER FUEL PRICE DECREASE

MBABANE – The 30 cents petrol price decrease announced by government yesterday has not been welcomed by many.

Some members of the public voiced out their disappointment in the seemingly meagre drop in fuel prices, in particular on petrol. Government yesterday announced a second fuel price decrease within a space of 30 days. The Ministry of Natural Resources and Energy Principal Secretary (PS), Dorcas Dlamini, announced that the price of petrol would decrease by 30 cents, while diesel and paraffin prices would decrease by 80 cents each.

Markets

Despite the fuel decrease being influenced by international markets, members of the public felt the decrease was as good as nothing. They were of the view that it would not make any difference, because the fuel price increases had been excessive. “But it won’t help if the decrease is 30 cents and in two weeks, the price will increase by E1.80,” said a member of the public. Others, however, expressed hope that the petrol price decrease would be massive, given the fact that on December 6, 2023, petrol prices were not adjusted downward, yet diesel and paraffin prices decreased by 80 cents. “We are also hoping for a decrease in food prices as well,” said another member of the public, who commented on the Times of Eswatini Facebook page.

According to the Ministry of Natural Resources and Energy, the new fuel prices shall come into effect at midnight, Thursday, January 4, 2024, (effective Friday, January 5, 2024). The PS said the decrease was due to the fact that the international oil prices decreased due to supply uncertainties, caused by concerns around the shipping route in the Red Sea. She explained that the brent crude oil prices traded at an average of US$81.11, which was equivalent to E1 522 a barrel, compared to an average of US$82.94 (E1 556.7) a barrel, realised in the month of November, 2023. She added that all the local fuel products yielded over recoveries or profits, necessitating a price decrease in the local prices. The Lilangeni/Dollar exchange rate slightly depreciated and averaged E18.67 in December 2023, as compared to the E18.50 realised in November 2023. Following the new changes, the price of Unleaded Petrol will decreased from E20.80 to E20.50 per litre. The price of Diesel 50 ppm S will decrease from E22.60 to E21.80 per litre while paraffin will cost E16.75, from E17.55. The PS encouraged the public to use fuel efficiently, as the international oil markets and the Lilangeni to Dollar exchange rate remained highly volatile.

Decrease

This is the third fuel price decrease in three months. On November 1, 2023, the petrol price decreased by E2 per litre, while the price of diesel and paraffin decreased by E1. On December 6, 2023, the ministry announced a decrease of diesel and paraffin decreased by 80 cents per litre, while petrol remained the same. Eswatini Consumer Forum Chairperson Mandla Ntshakala, welcomed the fuel price decrease. He said a decrease in fuel price was good news for consumers, especially in Eswatini, where a number of people were using public transport. He said public transport operators would not have an excuse to increase bus fares. Ntshakala said transport operators were using the fuel price hike to increase fares. He said an area where they needed to see an improvement was in the prices of commodities in stores. The chairperson said despite the decrease in fuel prices, it was not having a direct impact in the prices of commodities. Adding, Ntshakala said as an organisation, they were paving a possible formula, that could be crafted by government and other stakeholders to control the price of commodities in stores. “We are hopeful that the formula, once crafted, will be influential in the prices of groceries commodities,” he said.

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