The oil price has dropped to under half of what it was a year ago, plunging from an average of $120 a barrel in June to levels below $50 a barrel this week.<\/p>\n
As an oil importer, South Africa is a winner in this scenario, according to Heystek.<\/p>\n
Data from Oxford Economics shows that at $40 a barrel, the drop in oil could boost South Africa’s GDP by 1.3%.<\/p>\n
And this provides the perfect opportunity to scrap e-tolls, and gain some extra cash for the fiscus, he said.<\/p>\n
![\"Crude](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/01\/Crude-Oil-prices-9-Jan.png\")
<\/a>Crude Oil prices – 9 Jan<\/p><\/div>\n
Golden opportunity<\/h3>\n
The drop in oil has given much relief to South Africans through continuous drops in the price of petrol over the past few months.<\/p>\n
The South African fuel price has dropped by R2.41 per litre since November 2014, with the trend in oil prices looking set to continue downward.<\/p>\n
Heystek opines that by increasing the fuel levy by R1.00 per litre, the government could add R25 billion per annum to the government coffers, all thanks to this “lucky” outcome.<\/p>\n
“Consumers would not be paying more for fuel, only saving a little less than they would have, had the full benefits of the lower oil prices been passed on,” Heystek said.<\/p>\n
“Were I in government, I would also scrap the e-toll system in one go and fund the building of new roads out of the additional income derived from the increased fuel levy.”<\/p>\n
A case for the fuel levy<\/h3>\n
Sanral CEO Nazir Alli previously stated that in order to cover the maintenance needs of road infrastructure through a country-wide fuel levy, it would have to be increased by R1.00 per litre.<\/p>\n
To address the remainder of the maintenance over the next 10 years, an additional R0.45 per litre would be needed.<\/p>\n
Trade union Solidarity says its own research shows that a fuel levy increase of R1.48 per litre would be enough to cover the cost of Gauteng’s roads, but also settle the entire country’s backlog within 6 years.<\/p>\n
Issues that have been raised regarding a fuel levy to pay for e-tolls include the inability to ‘ring-fence’ funds from the fiscus, and that it is “unfair” to make the entire country pay for Gauteng’s infrastructure.<\/p>\n
More on e-tolls<\/h3>\n
E-toll fuel levy would add R1.00 per litre to pump price: Sanral<\/a><\/strong><\/p>\n The R1.1 billion e-toll liability<\/a><\/strong><\/p>\n E-toll collections \u2018break-even\u2019<\/a><\/strong><\/p>\n