LOCAL motorists have hit the panic button as South Africa announced a fresh fuel price hike effective tomorrow, sparking fears of an imminent increase locally.
The announcement has already sent shockwaves across the border, with many rushing to fill up their tanks in anticipation of higher costs.
History shows that whenever South Africa adjusts its fuel prices, the kingdom follows suit, whether upward or downward.
It has been exactly a month since the ministry last announced a fuel price adjustment, which saw local fuel types increase by no less than E2.90. Now, with South Africa’s Minister of Mineral and Petroleum Resources Gwede Mantashe attributing the latest hike to rising global oil prices and ongoing geopolitical tensions, households in Eswatini already stretched to breaking point face another blow.
This latest increase comes on the heels of April’s “fuel cliff,” which left many scrambling to cope with soaring costs. Yesterday’s announcement sparked immediate panic locally, with motorists rushing to petrol stations, leading to fears of shortages.
The ripple effect is expected to hit Eswatini imminently, leaving consumers bracing for another round of financial strain.
According to the department, the average price of Brent crude oil increased sharply from US$93.67 to US$101 per barrel during the latest review period. This rise has been linked to tensions between the United States and Iran, as well as disruptions in key supply routes such as the Strait of Hormuz.
“South Africa’s fuel prices are adjusted monthly, informed by international and local factors, including the cost of importing crude oil and finished products,” Mantashe explained. The department noted that global supply challenges had directly affected local fuel costs.
Diesel and illuminating paraffin have seen the biggest increases due to higher demand and reduced supply from the Persian Gulf region.
As a result, the Basic Fuel Price has gone up significantly. Petrol has increased by R2.04 per litre, diesel by R4.96 per litre, and illuminating paraffin by R4.21 per litre.
Locally, the price of unleaded petrol (ULP95) increased from E19.45/litre to E22.35/litre; diesel (0.005%S) hiked from E19.85 to E25.20/litre. The price of illuminating paraffin increased from E14.20 to E19.50/litre.
Economist Thembinkosi Dlamini expressed concern about the impact of the increase, describing it as unusually high and harmful to the economy.
“We have never seen such an increase. This is bad for the economy, especially since South Africa and Eswatini share similar conditions when it comes to fuel use,” Dlamini said. He warned that the effects could be long-lasting.
“Fuel prices are sticky. It will be hard for them to go back to normal. This is a long-term increase,” he added.
Dlamini cautioned that businesses might struggle to cope.
“Profits will decrease and some companies could move into a loss position. This will also affect service delivery as costs rise,” he said.
