Toll tariffs spiral

TRANSPORT OPERATORS are faced with an unexpectedly high increase in toll tariffs, which jumped by 6,16% from March 1, says Tradek economist Mike Schussler.
The increase is high, he says, as it has gone above the government target inflation of between three and six percent. He has predicted that the price of food and other goods will soon show a marked increase as most of them have to be transported by roads.
"The tariffs have been decided on by the South African National Roads Agency, and approved by the Department of Transport, but the agency, as a government agency, should adhere to what has been set by the finance ministry," he said. "This would have kept the increase lower."
But Agency spokesperson Judith Annakie is adamant that the increase is below the average increase in the Consumer Price Index of 6,4%, and will ensure the agency provides what she describes as value engineering.
"Toll tariffs pay for maintenance and upgrading of roads," she says. "In other words, toll tariffs are in investment in the efficient infrastructure for the country's developing economy."