Fuel tax pain hits this week, and major state company getting fleeced

The South African rand experienced a decline on Friday after a period of strong gains. Analysts, however, remain optimistic about the currency’s outlook, however.

The rand traded at 17.94 against the dollar, which reflects a decrease of approximately 0.7% from Thursday’s closing value.

The currency’s performance was negatively affected by the strength of the dollar and uncertainty surrounding U.S. President Donald Trump’s tariff policies.

An analyst from TreasuryONE highlighted that local factors are currently favourable for the rand following the SARB’s decision to resume interest rate cuts last week.

However, worries about US fiscal debt and trade tensions may lead to the rand remaining to trade between 17.70 and 18.00 against the dollar in the short term.

On Monday, 2 June, the rand was trading at R17.96 to the dollar, R24.22 to the pound and R20.41 to the euro. Oil was trading slightly lower at $64.39 a barrel.

Here are five other important things happening in and affecting South Africa today:

Fuel hike: South Africa’s fuel levy increases will take effect on Wednesday, 4 June. The general levy for petrol will rise to R4.01 per litre, while diesel will increase to R3.85 per litre, marking the first hike in three years. [Business Day]

Good new for Cape Town residents: Contractors engaged by Prasa have been accused of committing serious violations, including price-gouging, ghost billing, and fraud, while also delivering inferior work. One contractor inflated a bill by 2,023%. Prasa has been advised to file fraud charges against these contractors who have exploited the parastatal’s resources. [News24]

R500 million to print matric papers: The North West province’s education department has been criticised for a contract that will see it paying roughly half a billion rand to print matric exam papers over the next five years. [MyBroadband]

Rand water outage update: The first phase of Rand Water’s infrastructure maintenance is set to be completed on Monday. The bulk water supplier began servicing its system last Thursday, causing disruptions across Gauteng. [eNCA]

Questions raised over RAF legal fees: The Road Accident Fund (RAF) spent 84% of its R2.1 million on corporate legal services in 2024 on just two firms: Malatji & Co Attorneys Inc. and Maponya Ledwaba Attorneys, which are part of a 43-firm panel. Parliament’s Standing Committee on Public Accounts (Scopa) is asking for an explanation. [Moneyweb]