Business

5 important things happening in South Africa today

Staff Writer

 ·4 Jan 2023

Here’s what is happening in and affecting South Africa today:

• Fuel price drop: South Africans will be treated to a substantial reduction in petrol and diesel prices from today. Petrol prices will decrease by R2.06 per litre, while diesel will drop between R2.81 and R2.69 per litre from 50ppm and 500ppm, respectively. A litre of 95 unleaded petrol will cost R20.75 on the coast and R21.40 inland. Department of Mineral Resources and Energy (DMRE) says that the main reason for the drop in fuel prices is the declining cost of Brent Crude Oil. With fears of global recession, the oil price will continue to drop. [BusinessTech]

• Inflation easing: Economics Professor Waldo Krugell says that inflation is expected to drop in South Africa from March 2023. Krugell noted that many economists are looking at the base effect playing a role, as March’s inflation rate will be compared with 2022’s high prices. This means that if prices still go up, they will be compared to a much higher base – meaning a smaller percentage increase. [EWN]

• Cape Town beaches closed: Three beaches across Cape Town have been closed due to sewage spills – Fish Hoek Beach, Strand Beach and Small Bay in Blaauwberg. City of Cape Town’s Alex Lansdowne said that the city’s sewerage reticulation infrastructure was under immense strain due to higher stages of load shedding, resulting in pump station failures and the breaking of sewerage reticulation pipelines. Lansdowne said that the City would continue with daily water tests. [EWN]

• Weather warning in KZN and Eastern Cape: The South African Weather Service (SAWS) has warned that localised flooding is expected over the eastern interior of the Eastern Cape due to disruptive rain – putting a level two warning in place. SAWS has also issued a level two warning for severe thunderstorms in the interior of KwaZulu-Natal. Most other parts of the country can expect rain, but no warning other warnings have been issued by SAWS. [News24]

• Markets: The rand saw minimal movement against the dollar – remaining below 17.00/$. In global news, Oil Prices saw their most significant drop in three months, with a 4% decline. This is due to decreased demand from China, a stronger US dollar, and a bleak economic outlook for 2023. On Wednesday (4 January), the rand was trading at R16.94/$, R17.91/€, and R20.31/£. Brent crude is trading at $81.97 a barrel. [Reuters]