Mbabane – Government has spent more than E613 million cushioning consumers from rising international oil prices since February, but the prolonged surge in global fuel costs has now forced a E3.43 per litre increase across all three domestic fuel products.
Minister of Natural Resources and Energy HRH Prince Lonkhokhela said that the Strategic Oil Reserve Fund had absorbed a substantial portion of the increase in international fuel costs over the past seven months.
He said the fund was now under immense financial pressure following continued volatility in the international oil market and rising fuel import costs.
From October 2, 2026, ULP 95 petrol will increase from E25.97 to E29.40 per litre, while diesel will rise from E28.85 to E32.25. Illuminating paraffin will increase from E21.73 to E25.16 per litre.
The Minister said the adjustment had become unavoidable to safeguard the sustainability of fuel supplies and prevent possible shortages.
Eswatini imports 100 per cent of its fuel requirements, leaving the country exposed to movements in international oil prices.
According to the Ministry, domestic fuel products were experiencing under-recoveries of up to E4.80 per litre by the end of September.
Brent crude oil averaged above US$100 per barrel in September, compared to US$89 per barrel in August.
The Ministry attributed the increase to geopolitical tensions, disruptions along the Strait of Hormuz and Bab el-Mandeb, increased shipping and insurance costs and constraints on global refining capacity.
The Minister said the Government had particularly considered the impact of diesel prices on the transport and agricultural sectors when determining the latest adjustment.
He said Government had ensured that diesel did not increase according to the full market dictates.
Government is now looking at longer-term measures to reduce pressure on fuel prices, including the construction of the Strategic Oil Reserve Facility at Phuzamoya and ethanol blending with unleaded petrol.
A pilot ethanol-blending programme has already been undertaken, with regulations subsequently submitted to Parliament.
The Ministry will also engage the oil industry on the possibility of partially deregulating fuel prices.
The government said it would continue monitoring international oil prices and encouraged consumers to use fuel efficiently amid continued global market volatility.
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