Outa outraged by a proposed extra R3.63 on fuel levy
The Opposition to Urban Tolling Alliance (Outa) is shocked that Transport Minister, Dipuo Peters, says that a further R3.65 per litre needs to be added to the fuel levy in order to fund the road infrastructure needs.
Chairperson of Outa, Wayne Duvenage: “If one takes a little time to assess the impact of an extra R3.65 on the fuel levy, and compare this to the road infrastructure requirements, one quickly realises the absurdity of the statement and claims made by the Minister.
“Currently, the estimated annual volume of petrol and diesel sold in SA amounts to 22.9-billion litres (11.7-bn petrol and 11.3 diesel). By adding the suggested R3.65c per litre to the fuel levy, an additional R84-bn will be added into the tax pot per annum.
“The Gauteng freeway upgrade capital costs amounted to R18-bn. This is, however, an inflated figure due to construction companies collusive behaviour – which still requires action from Sanral to recover funds on behalf of society).
“This means the suggested R3.65 per litre will be able to finance almost five new GFIP Projects per annum.
“Any economist and infrastructure finance planner knows that projects of this nature are never financed in one year. The bonds raised are generally depreciated and financed over 20 to 30 years.
“If one takes the 22.9-bn litres of fuel sold per annum and add R0.10c per litre, the authorities will raise an additional R2.3-bn per annum. This amount will cover the GFIP (R18-bn) capital cost plus interest (at 12 per cent) over 20 years.
“Clearly the Minister and Sanral, when quoting this figure of R3.65 per litre, are conflating all other road upgrades and backlog projects throughout the country.”
