We warned government about the petrol price – OUTA

Some have noticed that OUTA is now campaigning for a reduction to the fuel levy, and had previously campaigned for the levy to be raised as a solution to funding road improvement projects in Gauteng, in the place of etolls.

On social media, there are users who have been accusing the organisation of flipping on the issues. But, OUTA’s Wayne Duvenage says a proper understanding of what they’re currently lobbying for shows that this is not the case.

Did Outa not want to increase the fuel levy in the place of e-tolls?

— Elka Pakendorf Ⓥ (@Elkapak) October 5, 2018

OUTA wanted a fuel levy tax in stead of tollling. When the Western Cape wanted to introduce it, OUTA opposed it. Dear OUTA with feet of clay, what is your solution?

— Coenie Vermaak (@coenie_vermaak) September 15, 2018

“At the time of the road infrastructure improvement project, the funding method chosen was etolls. The fuel levy was R1,11. We argue that if they increased it by just ten cents instead of e-tolls they would have raised the R22 billion needed for the project,” he says.

“Since then, they went and increased the fuel level by over R2.20. It now sits at R3.37.” he continues.

“We still maintain that a ten cents ring fence to pay off the Gauteng bonds is needed,” Duvenage says, referring to bonds from the Public Investment Corporation (PIC) that were used to fund the Gauteng Freeway Improvement Project to the tune of around R20 billion.

“The fuel levy is now R3.37, the money is there,” he says.

READ MORE: Fuel price: R20 per litre not far off

“We now want them to reduce the fuel levy by a rand, they pushed it up too much, to over 20 times what we advised,” Duvenage says.

“What happened was the oil price came down from R103 dollars a barrel to less than half of that, just over R50 over the course of a year,” he explains.

“Government then pushed the fuel levy and road accident levies up, and the public didn’t feel it because the fuel price was low,” he says.

“We warned government that when prices rose, it would lead to a hugely expensive fuel price, and that’s exactly what happened,” Duvenage continues.

He also says that government was earning R24 billion from fuel and levies in 2007 and now earns between R74 and 75 billion.

For more news your way, download The Citizen’s app for iOS and Android.