Fuel taxes up as government pushes public transport

Finance minister Pravin Gordhan raised the cost of fuel by 18 cents a litre while promising to invest in public transport in his 2011 budget speech. The general fuel levy will increase by 10 cents a litre on both petrol and diesel on April 6, while the Road Accident Fund levy will be increased by eight cents, to 80 cents a litre. This will raise the cost of transporting both freight and people. Gordhan outlined plans to provide commuters with alternatives to cars and taxis. “An efficient and costeffective public transport system is crucial because the majority of our people live too far from where job opportunities are,” he said. The Passenger Rail Agency of South Africa will be investing R86-billion over 18 years to replace its commuter fleet.