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

  • Telvent relocates and takes a global stance on ITS
    March 12, 2012
    Telvent's Manuel Sanchez Ortega, on relocating the company's headquarters to the US and how that fits in the international scheme of things. The change-of-address cards are in the post; Manuel Sanchez Ortega has just moved homes. The domestic upheaval of Telvent's Chairman and Chief Executive comes as a result of the decision to relocate many of the company's headquarter functions from Madrid to Rockville, Maryland in the US. Viewed in the context of its significant recent acquisitions in North America - am
  • Cellular communications drive the way forward for tolling
    January 18, 2012
    For more than 20 years prior to joining the ITS industry, Mike Payne of Idris, part of Federal Signal Technologies, worked for Vodafone - the world's biggest mobile operator. Here, he considers how the road tolling sector can grow and learn from the cellular industry. The global cellphone has been one of the most successful collaborative technology projects in the last 30 years. Mobile phone technology developed throughout the 20th century with the first public service in the early 70s. This was followed by
  • Glow-in-the-dark road debuts in the Netherlands
    April 15, 2014
    First promised in 2012, light-absorbing glow-in-the-dark road markings have finally made an appearance on a 500 metre stretch of the N329 road in the Netherlands. Developed by artist Daan Roosegarde and Dutch civil engineering firm Heijmans, the markings use a photo-luminescent powder integrated into the road paint, absorbing light during the day and glowing for up to eight hours in the dark. Part of Roosegarde’s vision included weather markings that become visible at certain temperatures, such as a s
  • International Road Safety Awards: the winners
    March 4, 2019
    Road accidents are a major blight on the world’s highways - but some companies are attempting to stem the tide. David Arminas reports on the annual Prince Michael International Road Safety Awards