….. Oil Reserve project is poised to cut fuel costs
….. Govt believes project to reduce transport costs, and stabilise fuel prices
By Mbongeni Ndlela
MBABANE – Eswatini is taking proactive steps to ensure its energy security through the construction of a strategic oil reserve.
Minister of Finance Neal Rijkenberg shared exciting details about this project, supported by a loan from the Ex-Im Bank of China on Taiwan.
“Having a strategic oil reserve is vital for a landlocked country like ours,” Rijkenberg stated. “It protects us from fuel shortages and helps stabilise prices.”
The reserve will allow Eswatini to store larger volumes of fuel, ensuring steady supplies even during disruptions.
“During times of unrest, such as what we saw in KwaZulu-Natal during COVID-19, we struggled to get fuel. This reserve means that never happens again,” the Minister explained.
Beyond resilience, the project is poised to cut fuel costs in the long run.
“By storing fuel and even blending ethanol in this tank, we are hoping to reduce transport costs and stabilise fuel prices for consumers,” Rijkenberg said. The reserve will also create new avenues for trade, including a future pipeline linking Eswatini to Mozambique’s coast.
“This is about planning ahead. It’s about making sure our economy keeps moving, no matter what happens outside our borders,” Rijkenberg noted. He added that the project aligns with the country’s ambition to grow its economy while safeguarding its strategic interests.
Although the reserve loan will be repaid by fuel users through levies already in place, the benefits will ripple throughout the economy. “It’s a smart investment in our resilience and in the future of Eswatini,” the Minister concluded.
As Eswatini takes charge of its energy security, the strategic oil reserve stands as a testament to forward-thinking leadership and a commitment to sustainable development.
