BY BANELE MAGONGO
MBABANE – Prices of fuel are set to increase by E1.10 this coming Friday.
The Ministry of Natural Resources and Energy released a statement informing the public that the prices of both unleaded petrol and Diesel 50 ppm will increase by E1.10, while Illuminating Paraffin will increase by 50 cents per litre, effective Friday, March 8, 2014. The new prices will come into effect at midnight on Thursday, March 7th.
According to the Ministry of Natural Resources and Energy, in February 2024, the global oil prices rose as the Organisation of Petroleum Exporting Countries (OPEC) announced a production cut.
The average price of brent crude oil was US$83.14 per barrel, compared to an average of US$79.89 per barrel in January. The exchange rate between the Swazi lilangeni and the US dollar also depreciated, averaging E18.97 in February 2024, compared to E18.74 in January 2024.
It is said that the weaker exchange rate and increased global oil prices led to under-recoveries which necessitated a price increase in March 2024. The under-recoveries are attributed to the weaker exchange rate, which makes imports more expensive, as well as the rising cost of oil, which is a key input in the production of fuel. The Ministry expressed that these are challenging times for the industry, and that the price increase is necessary to ensure the sustainability of the fuel supply.
According to the Ministry, the following are the new fuel prices unleaded petrol:
- (ULP) will increase from E20.50 per litre to E21.60 per litre.
- Diesel 50 ppm will increase from E21.80 to E22.90 per litre.
- The illuminating paraffin price will increase by 50 cents from E16.75 to E17.25.
The Ministry has urged the public to use fuel efficiently, given the high volatility of international oil markets and the lilangeni/US dollar exchange rate.
