MBABANE – The ongoing fuel supply and consumption challenges facing emaSwati emphasise the urgent need for the Strategic Oil Reserve Facility (SORF).
This was jointly emphasised by the Eswatini Consumer Forum (ECOF) and Business Eswatini, who both described the situation as a wake-up call for the country to strengthen its energy security.
E. Nathi Dlamini, the Chief Executive Officer (CEO) of Business Eswatini, said the war in the Middle East has exposed structural weaknesses in Eswatini’s fuel supply system.
“The war has revealed what we have long ignored,” Dlamini said. “Our fuel logistics companies have always operated like clockwork, and in doing so, they concealed the underlying weakness in our storage architecture. This weakness has now been exposed for what it truly is. We are sitting ducks when it comes to fuel storage in this country.”
He explained that when aggregating the storage capacity of all fuel supply companies in Eswatini, it became apparent that the reserves do not exceed two days of national consumption.
“Only two days,” he stressed. “After that, we are stuck in the middle of a creek without a paddle. This is a risk we simply cannot afford, especially as a business community.”
The CEO further revealed that fuel supplies entering the country are currently limited and that the premium per litre is becoming prohibitively high, as regional traders are now charging extra due to scarcity.
He explained that Eswatini requires around one million litres of fuel per day to operate efficiently. However, the country is currently receiving only a fraction of that amount because no stockpiling has been done, owing to the absence of adequate storage facilities.
“So, one would say the Strategic Fuel Reserve project makes less questionable commercial sense, probably even more so now than before,” Dlamini said, implying that the project is now more justified from both a business and economic standpoint.
Meanwhile, Mandla Tshakala, the Chairman of the Eswatini Consumer Forum (ECOF), said the importance and urgency of the Phuzumoya project cannot be overstated.
He explained that during unforeseen disruptions in fuel supply, such as wars, pandemics or other crises, fuel reserves act as a buffer, protecting the economy from severe shocks and ensuring that citizens can continue their daily activities at stable petrol or diesel prices.
Tshakala added that government will be able to accurately monitor daily and monthly fuel consumption, allowing the storage facility to respond effectively to national needs, particularly during times when fuel becomes scarce.
He commended the Government of Eswatini and the Ministry of Natural Resources and Energy for prioritising the project, describing it as a step in the right direction.
Furthermore, Tshakala urged the Southern African Development Community (SADC) to consider establishing a regional fuel storage facility, reducing reliance on supplies from the Middle East.
He suggested that Angola, a major oil-producing member of SADC, could play a pivotal role in spearheading such a regional initiative.
*Full article available on Pressreader*
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