Swazi oil deal will boost SA logistics industry

MBABANE – Equatorial
Guinea president Teodoro
Obiang Nguema Mbasogo
was in Swaziland last
week to ink a deal with
King Mswati to provide
his country’s crude oil to
the kingdom for domestic
use. However, due to the
absence of an oil refinery
in Swaziland, the product
will not arrive in its crude
form but only in its refined
state. Refining must be
done in SA, and will be
transported to and through
SA before making its way
to Swaziland.
One source told FTW the
crude would probably be
shipped to Cape Town or
Durban and refined at one
of those locations before
tanker trucks continued the
trip by road to Swaziland
via either the Oshoek
Border or Lavumisa Border
post.
While the deal will boost
Swaziland’s fuel supply
security, whether it will
lower petrol prices in
the kingdom remains to
be seen.
Thembinkosi Mamba,
the principal secretary for
the Ministry of Natural
Resources and Energy, told
the Swazi press: “There
are costs involved in the
acquisition of the oil, like
the cost of transporting it
to South Africa where it
will be refined, and the
charges that we will have
to pay for refining it in
that country.”
Historically, Swaziland’s
petrol prices have tracked
lower than SA because
of government subsidies.
Because of a government
financial crisis that has
seen Swaziland seek a
R2.4 billion loan from SA,
subsidies have been scaled
back and petrol prices are
now higher in the kingdom.