By Mbongeni Ndlela
MBABANE – Motorists will have to dig deeper into their pockets as fuel prices are set to increase at midnight on Thursday, 6th March 2025, becoming effective on Friday, 7th March 2025.
The Ministry of natural Resources and Energy has confirmed an 80 cents per litre hike across all fuel products, citing under recoveries and international market volatility as the primary reasons.
The new prices will be as follows:
• Unleaded Petrol (ULP 95): From E19.80/litre to E20.60/litre.
• Diesel 50 ppm S: From E20.20/litre to E21.00/litre.
• Illuminating Paraffin: From E14.55/litre to E15.35/litre.
WHY THE INCREASE?
According to the Ministry, the price adjustment is a result of under recoveries/deficits experienced in January and February 2025. The deficits were caused by a surge in international Brent crude oil prices, which averaged USD79 per barrel in January, as well as a depreciating Lilangeni against the US Dollar, which traded at an average of E18.80 to the dollar during the same month.
Despite a slight improvement in both the international crude oil prices and the exchange rate in February, the deficits remained substantial, necessitating the price increase.
Economic impact
The increase in fuel prices is expected to have a ripple effect on the cost of living, with transport costs and the prices of goods likely to rise. Economic analysts caution that households should brace for higher expenses in the coming weeks.
Small business owners, particularly those in the transport and logistics sectors, have expressed concern about the impact of the hike on their operations. A local taxi operator, Sabelo Dlamini, noted that the increase might force operators to review fares to maintain profitability.
Government’s advice to the public
In light of the volatile global oil markets and the fluctuating exchange rate, the Ministry has advised the public to use fuel efficiently. Practical tips suggested include reducing unnecessary trips, maintaining proper tyre pressure, and ensuring regular vehicle servicing to enhance fuel efficiency.
“We urge the public to adopt fuel-saving measures as the international oil markets and the Lilangeni/Dollar exchange rate remain highly unpredictable,” read part of the Ministry’s statement.
Looking ahead
As the situation remains fluid, the Ministry has assured the public that it is closely monitoring global oil prices and the exchange rate. Efforts to stabilize the local fuel market are ongoing, with stakeholders exploring strategic reserves and alternative sourcing options to cushion consumers from frequent price hikes.
Motorists and businesses alike are urged to stay updated on any further adjustments that might arise due to external market pressures. In the meantime, planning fuel usage prudently is the key to mitigating the impact of the increase.
For now, consumers are advised to fill up their tanks ahead of midnight to save on costs before the new prices take effect.
