The Democratic Alliance has called for the permanent removal of the Road Accident Fund levy from fuel prices, arguing that the failed entity does not deserve to add multiple rands per litre to the cost of petrol and diesel.
DA transport spokesperson Chris Hunsinger said on Wednesday the party will engage Transport Minister Barbara Creecy with plans to replace the RAF through legislative amendment.
“The Road Accident Fund is a failed entity, wracked by corruption, and unable to deliver settlement payments to hundreds of thousands of road accident victims,” Hunsinger said in a statement.
The RAF levy currently adds R2.18 per litre to both petrol and diesel prices, with every motorist contributing to the fund each time they fill up at a service station.
Hunsinger said the RAF’s former chief executive faces possible criminal charges from Parliament this week, though he did not provide further details about the nature of the charges.
The DA proposes replacing the current RAF model with a scaled-down safety net for road accident victims paired with compulsory third-party insurance for all drivers.
According to Hunsinger, the fund’s major shortcoming is its failure to meet its mandate whilst costing hundreds of millions of rands to administer and fight court cases.
“Deserving victims and survivors wait years for any RAF settlement, they are fought in court, and many unscrupulous individuals have established entire business practices aimed at milking the RAF for the most minor traffic incidents,” he said.
The RAF was established as a state-administered insurance scheme to provide a safety net for road accident victims who suffer material loss through no fault of their own, where the at-fault driver lacks the financial means to compensate them.
Hunsinger acknowledged the fund’s purpose as “noble” but described its execution as “an outright failure”.
“The model does not work, and South Africans must not be made to pay for it any longer at the pump,” he said.
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The DA’s call comes as fuel prices remain under pressure, with government having implemented temporary relief measures earlier this year that are set to be phased out by July 2026.
In March, the DA called for a 50% reduction in fuel levies for the duration of oil price shocks, though the latest proposal focuses specifically on the permanent removal of the RAF levy rather than broader fuel levy relief.
The party has not yet indicated when it plans to meet with Minister Creecy or provided a timeline for the proposed legislative amendments.
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