Cape Town – As at August 29, the price of petrol in eSwatini is hovering at around 23.25 emalangeni (R23.09) per litre, according to the latest data from Global Petrol Prices.com.
The average price of petrol in the world for this period is 22.82 emalangeni (SZL).
The easing of global oil prices followed weak manufacturing data in major economies which highlighted the darkening global economic outlook.
The global economic downturn means a bleak outlook for fuel demand, and the latest economic indicators are pointing to a serious decline in global manufacturing output.
According to an IOL report last month, the US economy has entered a technical recession after contracting for the second consecutive quarter as it shrank by 0.9 percent in the three months to June.
The manufacturing Purchasing Managers’ Index (PMI) fell into contractionary territory in South Africa, falling to 47.6 points in July from 52.2 points in the prior month, its lowest in a year.
In June, the eSwatini government announced a massive petrol price hike of SZL 2.50 per litre.
Eswatini’s Director of Energy, Bathabile Nkosi, announced that crude oil price increases and weaker lilangeni/dollar exchange rate were the main causes of the increase.
She said the crude oil price reached an average of $110.44 per barrel in May, up from an average of $106.38 in April.
Authorities in eSwatini blamed the ongoing political tensions between Ukraine and Russia and the proposed sanctions on Russian oil and gas, which put pressure on the international fuel product prices.
According to the eSwatini ministry of energy and natural resources, all petroleum products used in the country are imported from refineries Durban, in South Africa, by the oil companies.
The oil companies distribute the products to filling stations and to commercial users.
The ministry said it played a regulatory role in the petroleum downstream activities, in particular the pricing of all controlled petroleum products i.e. petrol, diesel and illuminating paraffin.
“The government's objective to keep petroleum prices affordable to the public is undermined by the volatility in international oil prices and the lilangeni/dollar exchange rate which the government has no control over.”
Since May 2021, eSwatini has been plagued by civil unrest and violent demonstrations against its ruler, King Mswati III, following reports that a 25-year-old law student, Thabani Nkomonye, had been killed by police.
IOL