5 things you need to know in SA business today and the petrol price over the past decade
1. It’s open warfare between Old Mutual chair Trevor Manuel and the company’s former CEO Peter Moyo. Moyo wants his job back, and is claiming damages, according to court papers filed before the South Gauteng High Court. He claims that his relationship with Manuel broke down after he challenged the "improper non-disclosure of a payment amounting to millions of rand, which was paid by Old Mutual in respect of [Manuel's] legal fees for his much-publicised legal battle relating to the Guptas and their associates". Old Mutual will oppose Moyo's application.
2. In his State of the Province address, Gauteng Premier David Makhura said that his government is willing to help settle billions of rands of e-toll debt, and that he wants to scrap the e-toll system. However, he didn't set out any clear plans about how it would be done.
3. The rand’s push to break through R14/$ was scuppered by a dollar bounce yesterday. Investors are more optimistic that a China-US trade war can be averted. It was last trading at R14.13 – still a remarkable recovery after it slumped to R15.17 less than a month ago.
4. Pick ‘n Pay has launched plastic-free aisles in some of its stores. You can now bring your own containers to these stores and load up on fruit and veg, instead of having it packaged in plastic.
5. Two of the largest companies in the ostrich industry are heading to the Competition Tribunal after the Competition Commission refused to permit their merger. The commission believes that a merger between Mosstrich and Klein Karoo International would result in a "near monopoly" in the market for ostrich meat and feathers.
The petrol price over the past decade
At midnight tonight, a 95c/litre cut in the petrol price kicks in. Diesel will drop by 74c a litre.
This is the latest twist in one hell of a fuel price ride over recent months:
In November, petrol prices rocketed to a record high. This was followed by a short reprieve, with cuts in December and January.
But from January to April, the petrol price jumped more than R2.10 a litre – a 13% increase in just three months. This was due to higher oil prices and a weaker rand, but also the result of increased fuel and Road Accident Fund levies, followed by the carbon tax in May.
“Currently more than 50% of the fuel price will be made up by taxes, margins, levies and other costs. Only two things in life are certain, that is death and taxes. And in South Africa it seems that the government wants to combine the two by taxing its citizens to death,” says the economics blog South African Market Insights.
Here’s how the petrol price moved since 2018:
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