Swazi Observer

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INYANDZALEYO ON FUEL HIKE

By NONDUDUZO KUNENE | 2021-12-02

Stakeholders are pleading for government’s interventions following the second fuel price increase in less than a month. The Trade Union Congress of Eswatini (TUCOSWA) and Consumers Association are pleading with the government to intervene where possible in the announced fuel hike proposed for tomorrow. This is the second fuel hike less than a month.

The last fuel hike was effected on November 6, 2021. Yesterday, Principal Secretary in the Ministry of Natural Resources and Energy Dorcas Dlamini informed the public that all the fuel product prices, will increase as from tomorrow. Dlamini said Unleaded Petrol will increase by 90 cents per litre, whilst Diesel and Illumination Paraffin will increase by 80 cents per litre.

“The new fuel prices will come into effect at midnight, Thursday December 2, 2021 effective Friday December 3, 2021,” she said. Following the proposed increase the new fuel products price is expected to exceed E17.15. Dlamini said Unleaded Petrol (ULP 95) price will increase from E16.25 per litre to E17.15 per litre.

Diesel (0.005%S) price will increase from E16.20 per litre to E17 per litre and paraffin price will increase from E10.95 per litre to E11.75 per litre. She explained that the increase was attributed to the international crude oil prices, which were reduced slightly from US$85.31 to US$79.09 last month due to the release of Strategic Petroleum Reserves which was coordinated by the world’s biggest economies against OPEC’s non-response from the request for mitigation measures against the escalating oil prices.

“However, the Lilangeni to Dollar exchange rate depreciated and averaged E15.36 in November, 2021 as compared to an average of E14.84 realised in the month of October, hence working against the positive impact of the reduced crude oil price,” she said.

Eswatini Consumers Association Chairman Bongani ‘Bhanyaza’ Mdluli was at loss for words. “These are very depressing news to consumers,” he said. He said it was unfortunate that the fuel prices increases occur just when people are fast approaching the festive season. Mdluli noted that already most consumers were affected by the recent civil unrests and COVID-19 outbreak and the fuel hike complicates the already difficult situation.

The chairman also noted that the increase will have a negative impact on various sectors of the economy since fuel is the basic product that influences the economic activity. He said it was unfortunate that government cannot control the fuel hike since it was affected by global commodities. In as much as government cannot control the hike, but he said government can cushion citizens from the hike.

He mentioned that government can reduce fuel and fuel products direct taxes so that the prices cannot increase. Meanwhile, TUCOSWA Secretary General Mduduzi Gina said the fuel price increase was just too much for employees in the country. Employees have never experienced two increments in a month.

“Fuel is a basic commodity and with the recent increase in prices, it is not a nice commodity to have,” he said. He also echoed Mdluli’s sentiments about government’s intervention. Gina said in instances where there are external influences government should cushion its people. This would be by reducing fuel taxes and levies.

“Employees, more especially civil servants have not received an increment or Cost of Living Assignment (CoLA) for a while,” he said. Gina further mentioned that there would be a serious reduction in spending behaviour which would result to destruction of economy operations. Meanwhile, South African motorists from yesterday were paying more for fuel, as they now pay above E20 for a litre of petrol.

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