E-tolls to cause price hikes

JOBURG- Since the launch of e-tolling on Gauteng's highways last week many motorists have avoided the costs of the multi-million rand system by not using tolled routes.

But experts warn that there may be some hidden expenses as a result of e-tolling that cannot be avoided.

According to economists, the real effects of e-tolling will be experienced in the coming months when retailers are expected to increase the prices of goods.

David Williams, financial expert and senior anchor for CNBC Africa, said businesses will bear the brunt of e-tolling.

“The e-tolling fees have been reduced from their initial levels, and public transport vehicles and taxis have been exempted. So the brunt of the burden will fall on private car owners and businesses. This will undoubtedly add to the cost of doing business in Gauteng.”

According to Williams, it will be difficult for businesses to refuse to pay e-tolls, which is breaking the law.

Concerns about the impact of e-tolling were also raised on social media.

@MixologyJHB tweeted: “Let’s do some maths here: Albany bread is based in Germiston, how many gantries must they go through to deliver to Sandton? #etolls”

According to the e-toll calculator on Sanral’s website, a truck with an e-tag, making a return trip from Geldenhys in Germinston to Rivonia in Sandton will pass under six gantries and pay R139.80.

A truck travelling the same route without an e-tag will pay R270.28, according to the calculator.

The e-toll tariffs for Class B heavy goods vehicles (3000kg to 9000kg) are capped at R1750 a month, while Class C (heavy articulated trucks) are capped at R3 500: these vehicles transport a significant portion of the province’s food and goods.

Additionally, vehicle rental companies and logistical companies are expected to amend their tariffs.

Joint managing director of RAM Hand to Hand Couriers, David Lazarus, said that in compliance with the law, the company has installed e-tags in all its vehicles and registered them for e-tolling.

Lazarus said e-tolling will increase RAM’s operational costs and the company will seek to recoup these costs.

Dawn Nathan-Jones, CEO of Europcar SA said, “E-tolls are inevitably an extra cost to customers but we ease any compliance challenges for them as much as possible […]Tolls will definitely have an impact on car rental business operations as Europcar incurs costs in administrating and collecting the e-tolls. The new system will become part of everything in the hiring process, from your rental agreement and vehicle check to reconciling your final billing,” said Nathan-Jones.

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