This Week in Business: Petrol Price Cut, Load Shedding Returns, and Coalition Talks

Welcome to this week’s edition of InsideSME Weekly, your source for the latest business news and trends impacting South African entrepreneurs and business owners. Here are the top stories and insights you need to know.

Top Stories

1. Petrol price cut by R1.24 per litre in June
   The Department of Mineral Resources and Energy announced that the petrol price will decrease by R1.24 per litre from June 5th. Diesel will also see a cut of between R1.09 and R1.19 per litre. This much-needed relief at the pumps comes as the Rand appreciated against the US Dollar.
2. Load shedding set to return as winter demand rises
   Despite going 70 days without load shedding, experts warn that power cuts are likely to resume in the coming weeks as electricity demand increases due to colder weather. Eskom’s unplanned losses of 14,200 MW are still unsustainable and could lead to stage 2 load shedding. Businesses should prepare for potential disruptions.
3. Five-year wage deal inked at Pan African Resources’ Barberton Mines
   Pan African Resources has concluded a milestone five-year wage agreement with unions at its Barberton Mines operations. The deal, which runs until June 2029, includes an average annual increase of 5.3%. This extended stability bodes well for the mining company.
4. Treasury says coalition government will not harm fiscal stance
   The National Treasury intends to maintain a balanced fiscal stance even under a coalition government, according to Director-General Duncan Pieterse. He stated that the current fiscal strategy is achievable in a coalition environment. This comes as the ANC negotiates potential coalitions after losing its majority.
5. City Power imposes load reduction to protect grid
   Johannesburg’s City Power is implementing “stringent measures” to reduce electricity consumption, which has reached “critical levels”. These include ripple relay systems, cut-off operations for illegal connections, and load reduction in high-density areas. The utility says this is a last resort to prevent grid collapse.

Industry Trends

1. Clothing retail lifted by strong TFG results
   TFG’s robust financial results are boosting sentiment in the clothing retail sector. The company reported strong sales growth, lifting shares of industry peers. Analysts see this as a positive sign for the sector’s recovery.
2. iStore now offers 60-minute deliveries in major cities
   As e-commerce competition intensifies, iStore has launched free one-hour deliveries for online orders in the Sandton and Cape Town CBDs. The service, called “iStore RightNow”, will soon expand to Pretoria and Durban. This move highlights the growing focus on fast, on-demand delivery in the retail space.

Expert Opinions

1. Graeme Körner on gold and Fed policy
   “Gold prices are holding steady as traders await the Federal Reserve policy meeting for direction after the sharp sell-off on stronger-than-expected US jobs data. The focus will be on comments from Fed Chair Jerome Powell and any changes to economic projections,” says Graeme Körner from Körner Perspective.
2. Kelvin Wong on the gold price outlook
   “The medium-term bullish trend in gold now has a chance of being damaged from a technical perspective after the jobs report. Unless the Fed’s dot plot pricing is very dovish, we could see a tremendous sell-off in gold, pushing US 10-year Treasury yields higher,” warns Kelvin Wong, senior market analyst at Oanda.

Upcoming Events

1. Sales Summit in Sandton on June 12
   The Sales Summit will take place in Sandton on June 12, bringing together sales professionals and thought leaders. Register now to gain insights on driving sales growth.
2. CX Mastery Masterclass: Building a high-performance CX team on June 18
   Join this online masterclass on June 18 to learn how to build and lead a high-performance customer experience team. The event will be held via Zoom.

New Articles & Resources

1. Exciting new AI features coming to Samsung phones
   Samsung is expanding its Galaxy AI capabilities, with plans to extend Live Translate to third-party messaging apps for voice calls. This on-device AI ensures private, multi-language communication. Read more about Samsung’s vision for the mobile AI era.
2. 2G and 3G shutdown a headache for SA merchants
   With the planned sunset of 2G and 3G networks by December 2027, South African merchants face the challenge of upgrading their point-of-sale terminals to 4G or 5G. Failure to do so could disrupt connectivity to banking services.

That wraps up this week’s business news roundup. Until next week, stay informed and keep growing your business.