A kilometre-based road user charge system : proof of concept study

The South African fuel levy is used to fund government's general expenditure programmes, including the construction and maintenance of roads and the support of public transport. Yet, the continuing reliance on the fuel levy to generate sufficient income is questioned, due to a decrease in the average amount of fuel sold per vehicle per annum. This in turn is due to technological trends which include more fuel-efficient vehicles, the introduction of electric and hybrid vehicles and alternative fuels, as well as societal trends which include working from home and Internet shopping. These problems around the fuel levy are not unique to South Africa. Various countries (America, the European nations, New Zealand and Australia) are also experiencing a decline in the amount of funds that the road-user charge can generate. However, these countries are actively engaged in looking at alternative means of road financing.