Sharp fuel price hike to be announced Thursday

MBABANE – While the nation tries to grapple with the electricity price hike set to kick in tomorrow, yet another headache is on the way.

It is likely to materialise before the end of the week. It will come in the form of an anticipated significant fuel price hike, set to be announced in the coming days, possibly on Thursday.

This, it has been gathered, has been motivated by concerns from suppliers that their situation is becoming dire in terms of pricing and supply.

This has been confirmed by the Minister for Natural Resources and Energy, Prince Lonkhokhela, who was responding to questions from this publication following reports that he was, once again yesterday, locked in a meeting with fuel suppliers.

The minister was asked if there were any developments, particularly as neighbouring countries are also considering fuel price hikes following a tightening fuel supply situation rooted in global developments.

Ongoing geopolitical tensions in the Middle East – a region that accounts for a significant share of the world’s crude oil production – have disrupted supply chains and created uncertainty in international oil markets.

These disruptions have led to delays in fuel shipments and rising costs, which are now being felt in smaller, import-dependent economies such as Eswatini.

During the interview with this publication, the minister shared that they have already met with major stakeholders, namely the suppliers.

“Even today, we had a meeting to discuss the situation. I even asked about reports suggesting that there is now some rationing taking place. They informed me that they did not say that. Instead, they said they are only rationing fuel to filling stations, in that if one normally receives a truck every day or every other day, there will now be delays,” said the minister.

He said it is not that the situation is out of hand, but rather that fuel is still coming into the country, albeit at a slower rate.

“At this point, there are delays of three to five days. These delays could increase if the situation does not improve. That may end up depleting our reserves at service stations. However, we do not think that will happen soon,” he said.

The minister further shared that during the meeting, suppliers raised concerns that fuel is now more expensive at the point of purchase.

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