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

  • Study finds big differences in toll collection cases
    December 16, 2013
    Examination of Norway’s tolling companies finds much to praise, and some criticisms too, as Torill Eidsheim told delegates at the ASECAP conference. The cost of collecting tolls has a substantial effect on the profitability, or otherwise, of tolling companies and is within the company’s control to a far greater degree than, for instance, traffic volumes. And while it is easy to assume that all tolling companies incur similar collection costs, that is not always the case according to Torill Eidsheim, pres
  • Regional, national managed enforcement for developing nations
    February 3, 2012
    Robot is offering nationwide enforcement services to both developed and developing countries.
  • Environmental impact assessments - where now?
    February 1, 2012
    Peter George, MVA Consultancy, questions the future direction of environmental impact assessments
  • Ignoring deadly defects in autonomous cars serves no one, say auto safety advocates
    July 29, 2016
    The US Center for Auto Safety, Consumer Watchdog and former National Highway Traffic Administration (NHTSA) administrator Joan Claybrook have told NHTSA administrator Mark Rosekind that "you inexcusably are rushing full speed ahead" to promote the deployment of self-driving robot car technology instead of developing adequate safety standards "crucial to ensuring imperfect technologies do not kill people by being introduced into vehicles before the technology matures." In a letter to Rosekind in response