THE DEPARTMENT OF TRANSPORT
Enquiries: Andries Schoeman, Tel: 012 309 3117 Email: firstname.lastname@example.org, Fax: 012 326 1969
17 April 2012 To: All Head of Departments Accounting Officers Adjustments in fuel and tariffs for motor transport On the 1st April 2007, the Department of Transport with assistance from our service provider introduced the new tariff calculation model to be used to calculate the tariffs for officials that make use of their private vehicles and Subsidized vehicles on Scheme A and Scheme C. The service provider provides The National Department of Transport with the raw data for updating the motor vehicle rates model. The model that was used previously was outdated and not flexible enough to accommodate both petrol and diesel vehicles. The raw data used in the model is obtained from the same service provider that provides rates to the Automobile Association. All calculations are done in terms of the methodology as set out in Transport Handbook no1 of 1977 and the methodology as set out therein. The tariffs as set out in the handbook make provision for fuel consumption, maintenance and capital depreciation. The Department of Transport embarked on a process of aligning the fuel tariffs that is payable on a monthly basis to officials traveling with motor vehicles to be a true and accurate reflection of the actual cost incurred. The database currently in use reflects the accurate and regular updated information in terms of fuel consumption, maintenance and capital depreciation. The capital and maintenance costs are updated annually in April, with the fuel
2012.04 Tariffs for Reimbursement
tariffs being adjusted monthly as per the prices published by the Department of Energy. After thorough consultations with the service provider, they have noted that the rates in general declined despite the annual capital and maintenance adjustments. The main reasons for these declines are based on the following:
The introduction of new entry level...