SA’s biggest retailer wants e-toll exemption
Shoprite, South Africa’s largest retailer, says it is considering making representations to the relevant authorities for exemption from e-tolls.
The group announced earlier in the week that the direct e-toll cost for its own fleet is R4 million, which will raise the price of food for the Gauteng consumer.
Earlier this month, listed transport logistics and mobility group, Super Group also highlighted the impact of e-tolls on its business.
Super Group CEO, Peter Mumford said: “The costs themselves (e-tolls) are significant and so is the administrative burden involved in managing the whole e-toll accounting.”
Diversified group Bidvest also warned on the potential impact of e-tolling on its distribution and car rental business.
Shoprite said it had identified the impact of e-toll fees on Gauteng food prices as an additional burden that consumers under economic pressure can live without.
“Shoprite Checkers has calculated that the recently instituted e-toll fees in Gauteng will add some R4 million per annum to our distribution costs.”
‘While Shoprite will obviously try to absorb the additional expense for as long as possible, it will not be feasible to absorb the impact on retail prices to consumers in the long run,” the group said in an emailed statement.
The group noted that it operates 529 food distribution trucks, which travel 140,000 km per day on average to make deliveries to its network of more than 840 supermarkets throughout the country.
For each R1 of fuel price increases, the total Shoprite fuel bill increases by R2.5 million per month. “This means the most recent 24.2 cents per litre increase in the diesel price this month costs us an additional R500 000 each month,” Shoprite said.
“While we support public transport exemptions for buses and minibus taxi’s as a means to support the workforce of this country, it is our contention that our food distribution vehicles should not be subjected to additional costs because of the impact on the price of basic food for the country’s most vulnerable consumers.”
“We are thus considering making representations to the relevant authorities for exemption from e-tolls,” Shoprite said.
It further noted that the costs referred to above do not take into account the additional indirect costs of our suppliers who deliver food to its distribution centres and directly to its stores using the same roads.
“The total additional distribution cost as a result of e-tolls for the entire the food industry will therefore compound inflation on basic foods throughout the country,” Shoprite said.
Economists have warned against the negative effect that e-tolls on consumers, while debt management firm, Debt Rescue, last month reported a sharp increase in the number of deeply indebted consumers seeking help in the form of debt review, following the introduction of toll fees.
More on e-tolls
Shoprite’s R4 million e-toll bill
People want e-tolls: Transport Minister
E-tolls scaring consumers into financial aid
Sanral addressing Zuma e-toll concerns
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