The Ministry of Natural Resources and Energy in Eswatini has announced that fuel prices will increase by E3.43 per litre for all three main fuel products: paraffin, diesel, and petrol. This change takes effect from October 2, 2026. According to Principal Secretary Lindiwe Mbingo, the increase is attributed to escalated global fuel price surges and supply disruptions. Crude oil prices averaged E1 650.36 (US$102) per barrel in September, up from E1 436 (US$89) per barrel in August.
The sharp escalation in fuel prices is driven by persistent geopolitical tensions, which have restricted shipping traffic through key straits and resulted in global fuel supply challenges. Additionally, the lilangeni/dollar exchange rate slightly depreciated, averaging E16.18 in September compared to E16.14 in August. Mbingo encouraged the public to use fuel efficiently, citing the volatility of international oil markets and the exchange rate.
The new prices for fuel products in Eswatini are as follows: unleaded petrol (ULP 95) will increase from E25.97 per litre to E29.40 per litre, diesel (0.005% S) from E28.85 per litre to E32.25 per litre, and illuminating paraffin from E21.73 per litre to E25.16 per litre. These changes will be effective from October 2, 2026.
Minister of Natural Resources and Energy Prince Lonkhokhela attributed the petrol hikes to ongoing tensions in the Gulf region, which have restricted the export of petrol from the Middle East. He noted that the price of a barrel of petrol has drastically increased from US$89 in August to US$106 in September. These conditions, he emphasized, are causing petrol hikes globally, not just in Eswatini.
Despite the hikes, the government has taken steps to cushion the price increase. Since April, they have released E613 million to mitigate the impact on the public. The minister noted that the highest amount paid in one month was E147 million, and the lowest was not less than E90 million per month. He acknowledged that the price increase will affect the inflation rate and the cost of basic commodities.
The government plans to use funds from the Fuel Strategic Oil Reserve Fund (Fuel Stabilisation Fund) to cushion the hike for the next three to six months, depending on prices. The minister assured that they are working to minimize the impact on the nation, particularly on farmers during the farming season. Cabinet has been engaged in lengthy discussions and has taken a decision on the hikes after understanding the reasons.
The fuel price hikes are a global concern, affecting not just Eswatini but the entire world. The minister urged the nation to work with the government to mitigate the impact. He emphasized that everyone is trying to find solutions to the issue, and the government is doing its part to ensure that the impact is not as severe as it could be.
Key points
- The fuel price increase in Eswatini is driven by global factors, including rising crude oil prices and supply disruptions.
- The government has released E613 million since April to cushion the price increase.
- The fuel price hikes will affect the inflation rate and the cost of basic commodities in Eswatini.
