Mbabane-The Ministry of Natural Resources has announced that the price of petroleum will increase with the effect from Midnight on Thursday, December 02, 2021. In a communique to the Secretary of the Oil Industry, the Principal Secretary, Dorcas Dlamini said the price of petroleum will increase by 90c per litre while diesel and paraffin will increase by 80c a litre.
The hike in prices is due to a weaker rand to which the LiLangeni is inextricably linked and higher oil prices during the period. The rand depreciated, on average, against the US dollar (from R14.72 to R15.85) during the period under review. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by over 34 cents per litre.
The average Brent Crude oil price increased from $82.50 to $83.00 per barrel during the period under review.
The key driver is the higher global demand recovery amid a weaker supply response from non-OPEC and other oil producers. There is a mismatch between demand and supply, i.e., there is more demand for oil products than the market can supply.
The US and other major oil consumers are coordinating efforts to try to lower high prices by releasing oil from their inventory stocks, while OPEC and Non-OPEC members are refusing to increase oil production to match the global recovery demand.
This is how the prices will reflect at the pumps.
| Unleaded Petrol (ULP 95) | Diesel 50ppm(0.0005%S) | Illuminating Paraffin | |
| Wholesale price | 1576 c/l | 1561 c/l | 1036 c/l |
| Retail Price | 1715 c/l | 1700 c/l | 1175 c/l |
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