Taxes on petrol now over R6 per litre, and Gautrain strike warning

The rand strengthened on Thursday, driven by optimism among global investors regarding trade negotiations with the US.

This positive sentiment followed South Africa’s signing of a trade deal with Vietnam, raising expectations for additional agreements before the 9 July deadline set by Washington.

The rand traded at 17.50 against the U.S. dollar, representing an increase of approximately 0.5% from Wednesday’s closing value, marking its highest level so far this year.

Additionally, the dollar was about 0.4% stronger against a basket of currencies after the U.S. reported stronger-than-expected jobs data, as investors anticipated further updates on trade negotiations.

On Friday, 4 July, the rand was trading at R17.49 to the dollar, R23.92 to the pound and R20.61 to the euro. Oil was trading slightly lower at $68.70 a barrel.

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

Petrol taxes: A large amount of the fuel price at the pump consists of taxes imposed by the National Treasury to support government spending. According to data from the National Treasury, South Africans pay R6.37 in taxes for each litre of 93-octane petrol and R6.24 per litre for diesel. [Daily Investor]

Looming Gautrain strike: The National Union of Metalworkers of South Africa (Numsa) has been granted a certificate to strike by the Commission for Conciliation, Mediation and Arbitration (CCMA), after it deadlocked with employers of the Bombela Operating Company (BOC), which manages the Gautrain. [Engineering News]

Red meat price pain: Foot-and-mouth disease is causing beef prices to rise, with shelf prices up 20% and carcass prices up 45%. The Department of Agriculture warned retailers not to exploit the situation and has options for beef imports. [News24]

Takealot’s plan to hire 18,000 people: Takealot plans to recruit up to 18,000 South Africans, including retrenched Post Office staff, as part of its expansion. The company is in discussions with the Department of Communications and Digital Technologies, but no agreement has been reached yet. [MyBroadband]

The end of strikes for port employees: The government has expanded the list of essential service employees who will be prohibited from striking to include key operations at the country’s ports, making private sector participation in the logistics sector more attractive. [Business Day]