BY SIFISO NHLABATSI
MBABANE — Government has spent more than E613 million cushioning consumers from international fuel price shocks since February, 2026, but says sustained global oil market disruptions have now placed the Strategic Oil Reserve Fund under immense financial pressure.
The Ministry of Natural Resources and Energy announced on Wednesday that petrol, diesel and illuminating paraffin will each increase by E3.43 per litre, effective from midnight Thursday, October 1, 2026, meaning the new prices will apply from Friday, October 2.
Despite the adjustment, Government says it has deliberately absorbed a substantial portion of the international increases over the past months in an effort to protect households, businesses and key economic sectors from the full impact of rising global fuel costs.
Minister of Natural Resources and Energy HRH Prince Lonkhokhela in a press conference held on Wednesday said the price adjustment had become necessary after prolonged international market volatility resulted in severe under-recoveries on domestic fuel products.
“Government has actively cushioned local consumers from the full brunt of price hikes by utilizing the Strategic Oil Reserve Fund,” the Minister said in his statement on the fuel price situation.
He said more than E613 million had already been paid from the fund to cushion consumers since the onset of the geopolitical tensions in February.
However, Prince Lonkhokhela said the prolonged period of high international oil prices and under-recoveries had put the fund under considerable financial strain.
“Because Eswatini imports 100 per cent of its fuel products, the country has limited capacity to completely shield consumers from aggressive international market shocks,” he said.
The Minister said domestic fuel products were experiencing under-recoveries of up to E4.80 per litre by the end of September, making continued cushioning at the previous level increasingly difficult.
The adjustment comes against the backdrop of a sharp rise in international crude oil prices.
According to the Ministry, crude oil averaged US$102 per barrel in September, compared with US$89 per barrel in August.
Prince Lonkhokhela attributed the increase to persistent geopolitical tensions, disruptions to shipping through the Strait of Hormuz and Bab el-Mandeb, higher shipping and insurance costs, and disruptions affecting Russian refining capacity and fuel exports.
The Ministry said these developments had constrained global fuel supplies and increased the cost of importing petroleum products into Eswatini.
The Lilangeni also weakened slightly against the US dollar, averaging E16.18 to the US dollar in September, compared with E16.14 in August, adding further pressure to import costs.
From Friday, Unleaded Petrol (ULP 95) will rise from E25.97 to E29.40 per litre, while Diesel 50ppm S will increase from E28.85 to E32.25 per litre. Illuminating paraffin will rise from E21.73 to E25.16 per litre.
The Minister, however, stressed that Government had paid particular attention to diesel because of its importance to transportation and agriculture.
“Government has paid attention to the Diesel price and ensured that the price of Diesel does not increase per the market dictates, as it impacts significantly to the transportation and agricultural sectors,” he said.
Government is also looking at longer-term measures aimed at reducing the country’s vulnerability to international fuel price shocks.
These include the Strategic Oil Reserve Facility at Phuzamoya, which the Ministry says will help mitigate high fuel prices once completed.
The Ministry is also pursuing ethanol blending with unleaded petrol, following a successful pilot programme, while regulations have been submitted to Parliament.
Prince Lonkhokhela said the Ministry would further engage the oil industry on the possibility of partial deregulation of fuel prices.
Meanwhile, Principal Secretary in the Ministry of Natural Resources and Energy Lindiwe Mbingo said the new prices would take effect at midnight on Thursday.
“The prices of Unleaded Petrol, Diesel 50ppm S and Illuminating Paraffin will increase by E3.43 per litre,” Mbingo said.
She said the adjustment was a result of escalating global fuel prices and supply disruptions, with the international oil market and the Lilangeni/Dollar exchange rate remaining volatile.
The Ministry has urged motorists and other fuel users to use fuel efficiently as Government continues to monitor international oil market developments.
Prince Lonkhokhela said Government recognised the pressure that fuel price increases placed on households and businesses, but maintained that the adjustment followed measures already taken to cushion consumers against exceptional international market conditions.
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