Economists Welcome Godongwana's Fuel Levy Cut; Eskom Raises Tariffs 9.61%

LOCAL NEWS

• Economists welcome FinMin Godongwana’s decision to cut the fuel price levy by R1.50 for two months, softening the blow on consumers from the rise in energy prices.
  • The decision will cost Govt R6bn, but will be offset by a release in SA’s strategic reserves. Godongwana says other measures such as capping 93-grade petrol prices will be introduced to soften the blow of fuel prices in June - SABC
• From today (April 1), Eskom’s 9.61% tariff increase will come into effect after its demands for 20.5% were slashed considerably – leaving a R12bn hole in its finances. A tariff hike for municipalities is set to come into effect in July - EWN
• A new report exploring the case for gas-fired power in SA notes that the energy sector should future-proof itself and end load shedding by only investing in gas-fired power in the next decade. Argues that introducing the first 3,000 megawatts of gas capacity by 2030 could cost around R37bn.
  • To pre-empt a ‘costly mistake,’ the report suggests that the information focuses more on wind and solar farms as they are 57% cheaper than gas plants. The short-term focus of the energy sector should be centred on the rapid addition of least-cost renewable capacity coupled with storage. – MoneyWeb

Data:

• 1000BST: Mar Absa Manufacturing PMI exp at 58.3 vs 58.6 prior