Motorists in Eswatini will face higher fuel costs after government announced a significant increase in pump prices, with petrol rising by E2.92 per litre, diesel by E6.40 per litre and illuminating paraffin by E6.78 per litre.
The adjustment, announced by the Ministry of Natural Resources and Energy, takes effect at midnight on Thursday, May 7, becoming effective on Friday. The hike will push the price of unleaded petrol (ULP95) from E22.35 to E25.27 per litre, while diesel (0.005% S) climbs from E25.20 to E31.60 per litre. Paraffin will increase from E19.50 to E26.28 per litre.
Principal Secretary Lindiwe Mbingo said the increase was unavoidable due to global pressures impacting fuel markets.
“The increase in fuel prices is a result of the ongoing Middle East conflict coupled with shipping restrictions in the Strait of Hormuz, which are causing oil prices to surge,” she said.
The latest hike follows a series of recent increases, reflecting sustained volatility in global oil markets. Analysts note that smaller, import-dependent economies such as Eswatini are particularly vulnerable to supply disruptions and rising international costs.
According to the Ministry, international crude oil prices have risen sharply, averaging around USD110 per barrel compared to USD95 in March 2026. This spike, combined with tightening supply chains, has placed significant pressure on fuel import costs across Southern Africa.
Government also revealed that oil companies incurred substantial under-recoveries, with deficits across petroleum products reaching high levels in recent months. Similar reports indicate combined deficits running into hundreds of millions of emalangeni, necessitating price adjustments despite mitigation efforts.
Mbingo noted that government has intervened to cushion consumers from the full impact.
“Government has cushioned the fuel price increases by 25 per cent of the under-recoveries,” she said, adding that funds from the Strategic Oil Reserve Fund were used to offset part of the burden.
Despite this intervention, the increases are expected to ripple through the economy, raising transport and commodity costs. Businesses have already warned of potential knock-on effects on inflation and the cost of living.
The Ministry has urged consumers to use fuel efficiently as both international oil markets and the lilangeni exchange rate remain volatile.
The latest adjustment underscores the ongoing strain on energy prices, with experts warning that further increases remain possible if geopolitical tensions persist.