UP TO E1.60 PER LITRE FUEL PRICE INCREASE MIDNIGHT

MBABANE – A fuel price increase of up to E1.60 per litre will be effected at midnight today.

This was announced by the Principal Secretary (PS) in the Ministry of Natural Resources and Energy Dorcas Dlamini. She said petrol prices would increase by E1.40 per litre, while diesel and paraffin would increase by E1.60 per litre. “The new fuel prices will come into effect tonight and will be effective tomorrow,” said Dlamini. She said the reason for the fuel price increase was mainly due to the international crude oil price, which increased and reached an average of E1 426.53 ($92.20) per barrel in February this year with the highest level being E1 547.35 (US$100) per barrel realised in mid February for the first time since September 2014.

Increasing

The PS said the situation of increasing oil prices was exacerbated by the decline in the crude oil supply due to low crude oil production by members of the organisation of the petroleum exporting countries (OPEC) and the geopolitical tensions in the Arab Gulf region as well as the invasion of Ukraine by Russia. “As a result, the fuel supply continues to lag behind the demand recovery,” she added. She said alongside the crude oil price increase, the Lilangeni to the Dollar exchange rate slightly appreciated and averaged E15.25 in the month of February this year compared to an average of E15.60 realised in January this year.  “The persistently high crude oil prices coupled with the slight appreciation of the Lilangeni to the US Dollar exchange rate have yielded huge under-recoveries or losses in the fuel products to the value of E2 per litre,” she added. Dlamini said while the ministry had increased fuel prices in the past year, the increases were partial and not by the full impact of the market costs, which was done to protect the economy from high fuel prices which were inflationary. “After cushioning the fuel prices in the past year, the Strategic Oil Reserve Fund balance has depleted and the current situation of the spiralling international oil prices is making the situation worse,” added Dlamini. The PS encouraged the public to use fuel efficiently as the international oil markets and the Lilangeni to the US

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