FUEL LEVY SPARKS BUS FARE HIKE THREAT

MANZINI – The E0.40/litre fuel levy, which is set to kick in on March 1, 2025, has sparked uproar within the public transport industry. It was announced by the Minister of Finance Neal Rijkenberg. It is set to take effect on March 1, 2025. The government has said that the levy will be used to fund the Roads Authority, a department responsible for maintaining the country’s roads. Public transport operators argue threatening to implement a bus fare hike on March 1, 2025, in response to the fuel levy. The operators argue that they were not consulted by government before the levy was announced, and that the levy will make it more difficult for them to operate their businesses.

“As of March 1, 2025, the Act has approved E0.40 to be added to fuel price in order to be able to fund the operations of the Road Agency Fund so that maintenance of the national, regional and local road infrastructure can be better executed,” the minister said. Following this announcement, public transport operators expressed concern, stating that while they had previously engaged with government on the fuel levy issue and opposed it, even prompting parliamentary debate, they were not consulted before this latest announcement.  

They learnt of the levy’s implementation through the media. They said inasmuch as they understand the need for such a fund, but procedure says government should engage the parties that will be affected. They argued that as a major stakeholder in the fuel industry, they were supposed to be consulted as this would affect their business, which is crucial for the development of the country as they transport people to and from work, products and crops to market places, among other things.

“We are convinced that government might have done this on purpose to push us out of business and introduce its bus company, which is something which it tried to do in 2017, but we rejected it,” said some of the public transport operators. Public transport operators argue that they are already burdened by a high fuel tax of E3.85 per litre, which goes directly to government’s Consolidated Fund.  

They propose that instead of implementing a new E0.40/litre fuel levy, government should either utilise the existing fuel tax revenue or explore alternative funding mechanisms like tollgates to support the Road Authority.  Furthermore, they assert that if the government proceeds with the new levy without engaging in proper consultation, they will be forced to raise bus fares on March 1, 2025, the same day the levy takes effect.

“Our associations are currently working on finalising bus fare hike proposals which will be tabled to government, but we can add the E0.40c on top of the fees that will be proposed and implement them without consulting with the administration as it also failed to engage us, yet the issue will affect us and our businesses immensely,” they said. They said this means that it will be their clients who will bear the brunt as the fuel levy will come from their pockets. Sabelo Dlamini, Chairman of the Swaziland National Road Transport Council (NRTC), acknowledged that while some members have discussed the fuel levy at various levels, these developments have taken the council by surprise. 

He stated that the NRTC is aware of the anger and frustration among its members and is working to organise a formal meeting to address the issue. Dlamini also revealed that the consultant currently finalising a bus fare hike proposal (which is already three years behind schedule) has not yet factored in the new E0.40/litre levy.  Therefore, the upcoming meeting will be crucial in discussing the implications of the levy and determining the NRTC’s course of action. On the other hand, the Swaziland Buses Association Chairman, Duma Msibi, said they also decry the lack of consultation from government side.

He said this is a difficult issue because currently, there is no business in the public transport industry, which means that the E0.40/litre fuel levy will greatly affect them. He also highlighted that indeed government once engaged them about the matter some years ago, but they opposed it. He said it is shocking that government is at the verge of implementing it without consulting them or reaching an agreement with the major stakeholder (public transport industry). “Two wrongs do not make a right,” Msibi said. In that regard, he said they will engage the NRTC to engage their line ministry over the matter. He emphasised they will try to engage government instead of being seen fighting it.

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