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

  • UK government’s autumn statement – fuel tax freeze ‘a positive step’
    December 6, 2013
    Among the transport announcements made by the UK Chancellor of the Exchequer, George Osborne, in his Autumn Statement, he promised tax relief for motorists, including a freeze in fuel duty for the remainder of this Parliament. He also confirmed the abolition of the paper road tax disc, ‘removing an administrative inconvenience for millions of motorists’ from October 2014. This move is expected to save the Driver and Vehicle Licensing Authority (DVLA) around US$5 million a year. It will also save fleet own
  • Moody’s projects positive 2017 outlook for US toll roads industry
    December 2, 2016
    The outlook for the US toll road industry remains positive, reflecting the expectation of continued strong traffic and revenue growth in the next 12 to 18 months, according to Moody’s Investors Service in its yearly outlook, Tolls Roads – US: 2017 Outlook – Strong Traffic and Revenue Growth Support Positive Outlook. Moody’s estimates that median traffic growth among 48 rated toll roads will range from three per cent to four per cent in the remainder of 2016 and into 2017, and that median toll revenue wil
  • Rapid growth makes Texas an incubator for tolling innovation
    September 8, 2014
    As the IBTTA’s annual meeting and exhibition heads for Austin, Mitchell Beer, president of Smarter Shift, considers the role of Texas in the development of tolling strategies and technology. The State of Texas has always prided itself on being ‘larger than life’. From the sprawling geography of the state itself with its wide open skies, to its entrepreneurial ‘get-it-done’ attitude, Texas exudes an impatient restlessness that pushes businesses and public agencies to deliver faster, better results. More ofte
  • Member States holding back digitalisation of EU transport logistics, says ECG
    April 21, 2016
    Legal uncertainty and a lack of uniform implementation of existing European and international legislation by Member States is holding back EU-wide digitalisation of the transport logistics sector, says the Association of European Vehicle Logistics, ECG. Lack of standardisation at European level regarding multimodal transport e-documents is a barrier to seamless, streamlined, flexible transport logistics within the EU. The economic, social and environmental advantage of e-documentation is clear. The 16.5