Skip to main content

Fuel levy won’t replace Gauteng e-tolls

Despite support from the Justice Project South Africa (JPSA) and the Opposition to Urban Tolling Alliance (OUTA), Gauteng’s e-tolls will not be replaced with a fuel levy after the country’s other eight provinces overwhelmingly rejected this idea, saying they will not be made to pay for excellent roads when theirs are poorly maintained. The provinces also rejected a proposal that the national government should take over the funding of improvements to Gauteng highways. Instead of the current user-pay p
September 23, 2014 Read time: 2 mins
Despite support from the Justice Project South Africa (JPSA) and the Opposition to Urban Tolling Alliance  (OUTA), Gauteng’s e-tolls will not be replaced with a fuel levy after the country’s other eight provinces overwhelmingly rejected this idea, saying they will not be made to pay for excellent roads when theirs are poorly maintained.

The provinces also rejected a proposal that the national government should take over the funding of improvements to Gauteng highways.

Instead of the current user-pay principle, the proposal calls for the money that the Treasury ring-fences for the improvement of all national roads to be used to help settle the massive US$1.8 billion debt incurred as a result of the upgrading of Gauteng’s highways.

“We cannot be funders of the beautiful roads in Gauteng when our roads are in a poor state,” Free State transport MEC Butana Komphela said.

JPSA’s Howard Dembovsky says there are other ways to pay for the roads and declares: “We have made a number of recommendations and of course we cannot ignore the elephant in the room which is the fuel levy. We have provided sustentative proof that there is no such thing as not being able to ring-fence the fuel levy.”

Civil body OUTA wants an increase of nine cents in the fuel levy considered as an alternative to e-tolling.  A panel which is made up of industry experts is hearing public submissions into the feasibility of the controversial Gauteng tolling system.

OUTA spokesman Wayne Duvenage says the tolls US$135 million behind after nine months of operations and it is getting worse every day. “We have advocated that if you add nine cents to the fuel levy, you will raise the US$171 million that you need every year to pay back the bonds and interest and the administration cost is zero.”

Related Content

  • US transportation policy needs to restart to sort shortcomings
    August 2, 2012
    Joshua Schank has no illusions when it comes to what he and the Bipartisan Policy Center are suggesting in Performance Driven: New Vision for US Transportation Policy. Released in June of this year, this major report (see Sidebar, 'The Shift in Thinking') advocates no less than a root-and-branch overhaul of the way in which the US transportation system is run - how money is allocated and how the beneficiaries of that funding are selected. As its name suggests, Schank and his colleagues are urging senior US
  • Tolling faces up to unprecedented challenge
    October 9, 2020
    The next five years are likely to see a number of changes – but the tolling industry will be equal to them, thinks the IBTTA’s Bill Cramer. The best minds in the business are on the case…
  • State panel looks for ways to fix roads
    September 4, 2014
    A special panel, the Transportation Funding Task Force, which includes legislative leaders and others, is about to launch a study of ways to boost state aid for Louisiana's often-criticised road and bridge system. "There is not a legislator across the state that does not have some kind of issue with getting a project done, starting a project, finishing a project," said state Representative Karen St Germain, chairwoman of the House Transportation Committee and a member of the panel.
  • New US fuel efficiency standards would cost over US$65 billion in lost revenue
    April 17, 2012
    Friday’s proposal by the Obama Administration to increase fuel efficiency standards for cars and light trucks to an average 54.5 miles per gallon (4.32 litres/100 km) between 2017 and 2025 would result in the loss of more than $65 billion in federal funding for state and local highway, bridge and transit improvements, an analysis by the American Road & Transportation Builders Association (ARTBA) shows.