New-car sales up, but consumers hit by further fuel price blow

MOTOR industry analysts are sticking to their guns that newvehicle sales this year will exceed those of last year, despite sales lagging at the halfway point. June new-vehicle sales improved by 3% from 45 332 to 46 678 compared to the corresponding month last year.

SOUTH Africa should “seriously consider” freezing or decreasing its fuel levy to reduce the impact on consumers of record-high petrol prices, the ANC said. The government should also increase its fuel reserves and improve governance and finances at the Road Accident Fund, national oil company PetroSA and the Central Energy Fund, the party said.

SENTIMENT in the private sector is looking up, according to the Standard Bank purchasing managers’ index. The index, which looks at the whole economy, rose to 50.9 points in June from 50 in May, driven by stronger growth in new orders. CREDIT ratings agency Moody’s warned that if the rand continues to weaken, South Africa may struggle to raise funds and service its foreign debt, although its vulnerability to tightening global financing conditions remains low. South Africa’s public debt has ballooned to more than 50% of GDP over the past decade.

THERE is nothing much the government can do to stem the rampant fuel increases since it imports the bulk of its requirements, Economic Development Minister Ebrahim Patel said. Motorists and commuters were hit by yet another fuel price hike on Wednesday.

SIBANYE-Stillwater said gold output in South Africa will be 6% lower than expected this year while costs will be higher, after a series of fatal accidents disrupted operations. Some 21 people have died at Sibanye’s local mines this year, nearly half of the total 47 reported deaths.