MBABANE - It is getting tougher!
While consumers try to come to terms with the increased electricity tariffs which came into effect yesterday, motorists now have to deal with fuel prices, which are set to rise sharply, effective at midnight, amid global market pressures.
Yesterday, the Ministry of Natural Resources and Energy announced a significant increase in fuel prices, citing mounting pressure from global oil market disruptions linked to ongoing geopolitical tensions in the Middle East.
In a public statement released ahead of the adjustment, the ministry, through Principal Secretary Lungile Mbingo, confirmed that the new fuel prices will come into effect at midnight, becoming effective tomorrow.
According to the announcement, the price of Unleaded Petrol (ULP95) will rise by E2.90 per litre, increasing from E19.45 to E22.35 per litre. Diesel (50ppm S) will see a much steeper increase of E5.35 per litre, moving from E19.85 to E25.20 per litre.
Meanwhile, the price of illuminating paraffin will climb by E5.30 per litre, from E14.20 to E19.50 per litre.
The ministry attributed these sharp increases to escalating international oil prices, driven largely by supply chain disruptions and heightened geopolitical instability in key oil-producing regions.
During March 2026, Brent crude oil prices surged to an average of US$104 per barrel, a substantial increase from the US$69 per barrel recorded in February 2026. This dramatic rise has had a direct impact on the cost of importing fuel products, resulting in extended delivery lead times and elevated procurement costs. Officials noted that the cumulative effect of these global pressures has created substantial under-recoveries in the domestic fuel pricing structure.
Deficits across petroleum products reached as high as E12.14 per litre, making an upward adjustment unavoidable.
The combined financial impact for March and April 2026 has resulted in a deficit of approximately E332 million, borne jointly by oil companies and government. To mitigate the burden on consumers, government will draw from the Fuel Strategic Oil Reserve Fund, also known as the fuel stabilisation fund, to offset part of the cost increases.
Despite this intervention, the ministry acknowledged that the scale of the global price surge necessitated a considerable adjustment at the pump.
The ministry has urged the public to exercise fuel efficiency and adopt energy-saving practices, warning that international oil markets remain volatile and unpredictable in light of continuing geopolitical tensions.
The latest adjustment underscores the vulnerability of domestic fuel prices to global market dynamics, particularly in an environment characterised by supply uncertainties and rising crude oil costs.
Meanwhile, in a separate press statement, Minister for Natural Resources and Energy Prince Lonkhokhela, assured the nation on the current fuel supply situation, amid growing concern and heightened demand observed throughout March 2026.
The minister emphasised that government remains fully aware of public anxiety surrounding fuel availability and has taken proactive steps to ensure that supply remains stable across the country.
He noted that, despite ongoing global supply chain constraints affecting fuel markets worldwide, the ministry is working closely with oil companies to maintain a steady and uninterrupted flow of fuel.
Prince Lonkhokhela explained that the recent surge in demand and perceptions of fuel shortages are largely driven by consumer behaviour in anticipation of potential fuel price increases, rather than an actual lack of supply. He clarified that the situation has been influenced more by market expectations than by any real disruption in fuel availability.
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Minister for Natural Resources and Energy Prince Lonkhokhela. (Pic: Ntombi Mhlongo)