MBABANE – Motorists will pay more at the pump again from tomorrow, marking Eswatini’s third fuel price adjustment in just eight weeks.
Principal secretary in the Ministry of Natural Resources and Energy yesterday announced a mixed fuel price review that will see petrol rise by 90 cents per litre, while diesel and paraffin record substantial reductions.
The new prices take effect at midnight tonight and become effective tomorrow.
Under the adjustment, Unleaded Petrol (ULP95) will increase from E25.27 to E26.17 per litre. Diesel (50ppm S) will decrease by E2.40 per litre, falling from E31.60 to E29.20, while illuminating paraffin will drop by E2.90 per litre, from E26.28 to E23.38.
The latest review comes barely eight weeks after consumers were hit by steep fuel increases in April and May, which were largely attributed to escalating tensions in the Middle East, disruptions in global oil supply chains and rising crude oil prices.
According to the ministry, international crude oil prices have since eased, averaging US$104 per barrel compared to US$110 per barrel recorded in April. Freight rates have also declined, contributing to lower costs for diesel and paraffin.
Officials said diesel and paraffin prices benefitted from weakening demand following the end of the northern hemisphere winter season. However, petrol prices continued to face upward pressure as demand rises with the onset of summer in major global markets.
“The improvement in diesel and paraffin is due to easing demand with the end of winter season in the northern hemisphere, while petrol demand is rising as the onset of summer intensifies driving,” the ministry stated.
The latest adjustment follows two consecutive fuel hikes that pushed petrol prices from E19.45 per litre in March to E26.17 per litre, representing a cumulative increase of E6.72 in less than three months.
During the April adjustment, government intervened through the Strategic Oil Reserve Fund, cushioning consumers from the full impact of global price increases. More than E330 million was reportedly utilised from the fund to offset part of the increase, with additional support provided during the May review.
The Federation of Eswatini Business Community (FESBC) welcomed the reductions in diesel and paraffin prices, saying they could provide some relief to businesses that rely heavily on transportation, logistics and energy consumption.
However, the organisation warned that the increase in petrol prices would continue to place pressure on micro, small and medium enterprises (MSMEs), particularly those dependent on petrol-powered vehicles.
According to FESBC, higher petrol costs are likely to increase operational expenses, reduce profit margins and force some businesses to review pricing strategies.
“Businesses may be compelled to adjust their prices, which could affect competitiveness and customer demand,” the organisation said in its reaction to the adjustment.
FESBC encouraged businesses to improve fuel efficiency, optimise transport routes and explore innovative ways of reducing fuel consumption to cushion themselves from future price fluctuations.
The organisation further noted that lower diesel prices could benefit sectors such as agriculture, manufacturing and retail by reducing production and distribution costs.
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Motorists will pay more at the pump again from tomorrow, marking Eswatini’s third fuel price adjustment in just eight weeks.