MASSIVE FUEL HIKE OF UP TO E2.50 PER LITRE FROM MIDNIGHT

MBABANE – Motorists have to dig deeper into their pockets as the Ministry of Natural Resources and Energy has announced yet another fuel price hike of up to E2.50 per litre.

The announcement was made by the Director of Energy, Bathabile Nkosi, yesterday during a press conference held at the ministry’s conference room. Nkosi announced that the hike would come into effect at midnight today, effective (tomorrow) Friday, June 3, 2022). The director announced that the increase in the fuel prices will therefore be as follows; the Unleaded Petrol (ULP 95) price will increase from E19.05/litre to E21.55/litre, Diesel (0.005%) price will increase from E19.60 litre to E22.10/litre; and paraffin price will increase from E14.35/litre to E16.85/litre.

Nkosi stated that the crude oil price increases and weaker Lilangeni/Dollar exchange rate were the main causes of the fuel price increase. She said the crude oil price reached an average of US$110.44 per barrel in May, 2022 from an average of US$106.38 realised in the month of April, 2022. She added that this crude oil price increase, was a result of the persistent political tensions between Ukraine and Russia and the proposed sanctions on the Russian oil and gas, which put pressure on the international fuel product prices.

Average

“The Lilangeni/Dollar exchange rate remained weaker at an average of E15.95 from an average of E14.85 realised in the month of April, 2021,” she said. She added that it was worth mentioning that the international oil market situation remained turbulent and the crude oil prices, coupled with a weaker Lilangeni /Dollar exchange rate, necessitated a higher fuel price increase locally of E4.12 per litre for petrol, E5.14 for diesel and E5.17 for paraffin. “However, government will partially cushion this high fuel price increase hence reducing the impact to the consumer and protecting the economy in the process,” said Nkosi. She encouraged the public to use fuel efficiently as the international oil markets and the Lilangeni/Dollar exchange rate remained highly volatile. It is worth noting that this hike was the forth one in a space of six months. In February, petrol increased to E17.15 per litre while in March it hiked to E18.55 per litre. In April, the petrol price increased to E19.05 per litre.

The fuel hike in Eswatini followed that of South Africa, which came into effect yesterday. South Africa motorists were hit with R2.43 per litre petrol hike which was effective yesterday.
The South African fuel hike was confirmed by that country’s Department of Mineral Resources and Energy on Tuesday. The department said the fuel price increases for June 2022 would be; R2.43 for 93 ULP and LRP petrol; R2.33 for 95 ULP and LRP petrol; R1.10 for diesel (0.05% sulphur); R1.07 for diesel (0.005% sulphur); and R1.56 for illuminating paraffin. In South Africa petrol now costs R23.85 per litre.

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