South African motorists are bracing for a fuel price hike this week, as the general fuel levy is set to increase for the first time in three years. At the same time, the country’s economic landscape is being shaken by a weakening rand, questionable public spending, and deepening concerns over corporate governance in major state entities.
The fuel levy increase will take effect on Wednesday, 4 June. Petrol users will now pay R4.01 per litre in levies, while diesel will cost R3.85 per litre. These hikes are expected to place added pressure on already struggling households and small businesses across the country.
Meanwhile, the South African rand has lost some of its recent strength, trading at R17.94 to the US dollar on Friday—down approximately 0.7% from Thursday. Analysts say the decline is largely due to the dollar’s performance and uncertainty surrounding U.S. fiscal policies. Nevertheless, many remain optimistic about the rand’s medium-term potential.
State Entities Under Fire Amid Billions in Questioned Spending
Adding to the country’s economic concerns, the North West education department is under fire after signing a deal to spend R500 million over five years on printing matric exam papers. Critics argue the deal is excessive and raises red flags regarding value for money.
Simultaneously, the Road Accident Fund (RAF) is being questioned over how it spent R2.1 million in corporate legal fees. A staggering 84% of those funds went to just two law firms, out of a panel of 43. Parliament’s Standing Committee on Public Accounts (Scopa) is demanding clarity on the rationale behind the allocation.
In another blow to public confidence, Prasa contractors have been implicated in serious misconduct, including price inflation and billing fraud. One shocking example revealed that a contractor charged R1,416.04 for work that should have cost R19,516.95. Investigators are urging Prasa to lay criminal charges against those responsible.
While these issues grab national headlines, many Gauteng residents have been grappling with water supply disruptions. Rand Water’s ongoing maintenance program, which started last Thursday, has been affecting numerous areas. The good news is that the first phase is set to be completed by Monday, offering some relief to affected communities.
As the country navigates through economic pressures and governance challenges, the looming fuel price hike is a stark reminder of how deeply national issues can impact everyday life. With a volatile currency, rising living costs, and mounting evidence of mismanaged state funds, South Africans are left with growing frustration and fewer financial options.