Over E173m projected from fuel oil levy
MBABANE – Government will continue cushioning emaSwati against shocking fuel price hikes as E173 million would be raised through taxes for this cause.
7he Ministry of 1atural 5esources and Energy has proMected to collect slightly over E million in fuel oil levy.
7he ministry¶s annual performance report which was taEled in 3arliament Ey Minister 3rince /onkhokhela stated that E 0 would have Eeen collected Ey March 0 Ey the ministry. 7his money would have Eeen raised Ey fuel products retailers from consumers. 7he fuel oil levy is at 50c l which is for the cushioning of fuel price increases and it will go to the Strategic 2il 5eserve )und.
&urrently the gloEal fuel price is 8S . 5 per litre which is around E 5.05 using yesterday¶s 8S 'ollar to /ilangeni e[change rate.
Petrol
$ litre of petrol in Eswatini costs E . 0 which is E Eelow the gloEal rate. $s of 'ecemEer 0 the fuel oil levy collected was E 0 which is more than the estimated E 00 55.
1oteworthy Eswatini has other ta[es linked to fuel. 7hese include the fuel ta[ of E . 5 per litre which goes straight into the government consolidated fund. )uel oil levy is at 50c l which is for the cushioning of fuel price increases and it goes to the Strategic 2il 5eserve )und. 7he ministry stated that the fund was staEle and aEle to cushion fuel prices. /ast month the fund was aEle to cushion the fuel prices. $s other countries were e[periencing the fuel hike the ministry announced that government¶s cushion was enough to cover the increase until last week when E . 0 was added to petrol and diesel prices while 50 cents was added to the paraffin price.
7he ministry noted in the report that in this reporting period as the fuel price situation remained volatile as the crude oil price ranged Eetween 8S . 5 per Earrel and 8S . 5 per Earrel and the /ilangeni 'ollar e[change rate weakened and ranged Eetween E . and E .0 . ,t went on to state that the fuel prices were staEle at the Eeginning of the year 0 . +owever in SeptemEer 0 sharp fuel prices were e[perienced. Slight decreases were e[ perienced in 1ovemEer and 'ecemEer.
³)or the remainder of the financial year it is anticipated that oil prices would remain staEle due to the anticipated continued slowdown amid a weaker gloEal economic growth as oil demand is synonymous with economic activity ´ stated the report.
7he Motor Vehicle $ccident )und levy at 5 c l which is for the Sincephetelo Motor Vehicle $ccidents )und. 2ther levies include the Eswatini 1ational 3etroleum &ompany E13& levy which is at 5 c l as well as customs and e[cise duty of c l which contriEutes to the Southern $frican &ustoms 8nion S$&8 sharing formulae.
7hese ta[es are remitted Ey fuel oil retailers to the respectaEle ministries Eeing the Ministry of )inance and 1atural 5esources and Energy.