Mbabane: Petrol prices are expected to decrease with effect from midnight.
This was announces by the Principal Secretary in the Ministry of Natural Resources and Energy Winnie Stewart in a press statement.
“The Ministry of Natural Resources and Energy informs the public that following disruptions in global oil markets, fuel prices will be decreased by 100c/ E1 for petrol and illuminating paraffin and 80c in diesel. The new prices will come into effect Thursday midnight 7th May, 2020. Reads the statement.
According to the statement the decrease in fuel prices is a result that the global demand for oil is seriously depressed against a huge supply storage which is not required by the world presently. As a result the global crude oil prices has collapsed.
The statement reveals that unleaded petrol (ULP) price will decrease by E1.00 per litre from E12.65 to E11.65, Diesel 50ppm Sulphur (0.005%) price will decrease from E12.90 per litre to E12.10 and Illuminating Paraffin will decrease from E8.15 per litre to 7.15 per litre.
These prices according to the statement from the Ministry of Natural Resources and Energy will be effective from Thursday7 May 2020.
As a result of the lockdown, many may not have felt the benefit of the petrol price drop in April. However, as May begins there is another E1 price drop.
The fall in the oil prices has been accompanied by a sharp depression in the exchange rate between lilangeni and the US Dollar, which resulted in the decline in oil prices.
In the month of April 2020, Brent crude oil prices averaged US$32.53 a barrel compared to an average of US$53.35 a barrel realized in the month of March 2020, whilst the daily average Lilangeni/US Dollar depreciated to an average of E18.46 compared to the monthly average of E16.44 in the month of March 2020.
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