Fuel levy option for maintenance of highway network will lead to increases in pump price

Decisions to fund the maintenance needs of the national road infrastructure through a country-wide fuel levy will add an additional R1 per litre to the pump price, Sanral, CEO, Nazir Alli, told the Gauteng e-toll Review Panel today.

Alli said the Minister of Transport, Dipuo Peters, was quoted out of context that the fuel price will have to be increased by R3.65 per litre to pay for the Gauteng Freeway Improvement Project.

The point she made was that money raised by the fuel levy cannot only be used for the 200km of highway network that serves and benefits the province of Gauteng. It will need to be spread on an equitable basis across all nine provinces and the entire national road network.

The National Treasury already reallocates more than the current fuel levy to transport requirements, he said.

To only address the network sustaining maintenance needs of R65.8 billion per annum will require an additional R1 per litre of fuel. This will increase the fuel levy to R3.17 per litre.

Alli said to address the remainder of the strengthening - five years - and regravelling - 10 years - not allocated to the sustaining maintenance as well as the gravel road surfacing backlog will require a further R0.48 per litre of fuel - raising the average fuel levy to R3.65 per litre.

Issued on behalf of Sanral.