South Africa’s neighbour hit by rising fuel costs and proposed electricity hikes

Households in one of South Africa’s neighbouring countries are facing mounting pressure from rising energy costs, with motorists already paying more for fuel and electricity consumers potentially facing another tariff increase.

Eswatini is experiencing a sharp rise in fuel prices, while the country’s electricity utility is seeking approval for two further tariff adjustments that could make power more expensive over the next two financial years.

Eswatini seeks another electricity tariff increase

The Eswatini Electricity Company (EEC) has applied for an average electricity tariff increase of 18.38% for the 2027/28 financial year.

The utility is also seeking a further 14.68% increase for 2028/29, according to a consultation paper published by the Eswatini Energy Regulatory Authority (ESERA) in November 2026.

If approved, the first adjustment would take effect on 1 April 2027, followed by the second on 1 April 2028.

The EEC attributed the proposed increases partly to the cost of purchasing electricity, which accounts for approximately 61% of its revenue requirements.

The application also includes the recovery of historical costs and expenditure on maintaining and improving the electricity network.

The proposed increases are not yet approved.

ESERA is conducting a review and is expected to announce its decision by 1 February 2027.

The latest application follows an 11.74% average electricity tariff adjustment that took effect in April 2026 after government intervention reduced the initially approved increase of 13.61%.

ESWATINI Fuel prices have increased sharply

Electricity is not the only energy expense putting pressure on Eswatini consumers.

Motorists experienced another significant fuel price adjustment on 1 October 2026, when petrol increased by E3.43 (R3.43) per litre.

The price of unleaded petrol 95 rose from E25.97 (R25.97) to E29.40 (R29.40) per litre.

Diesel also increased by E3.40 (R3.40), from E28.85 (R28.85) to E32.25 (R32.25) per litre.

Illuminating paraffin rose from E21.73 (R21.73) to E25.16 (R25.16) per litre.

According to the Times of Eswatini, the Ministry of Economic Planning and Development reported that domestic fuel prices had increased by 51.2% since April 2026.

The ministry warned that higher fuel costs were increasing production expenses, weakening export competitiveness and putting pressure on household purchasing power.

Higher energy costs could affect households and businesses

The developments present another challenge for Eswatini consumers, who are already dealing with higher transport and essential goods costs.

Fuel price increases can push up transportation and distribution expenses, potentially affecting the prices of food and other goods.

Businesses that rely heavily on electricity could also face higher operating costs if the proposed tariff adjustments are approved.

For households, the combination of more expensive fuel and electricity could leave less money available for other expenses.