Transport Minister Barbara Creecy plans to block the Road Accident Fund’s (RAF) request to increase the fuel levy to R3 per litre, saying South Africans are already under severe financial pressure.

The RAF, which faces liabilities exceeding assets by R439.5 billion, has appealed to National Treasury for a 75-cent increase in the fuel levy, from the current R2.25 per litre. The request comes as fuel prices have hit record levels of above R30 per litre.

“As long as I’m in this job, we will not apply to National Treasury for an increase in the fuel levy,” Creecy said in an interview with eNCA. “Consumers are under enough pressure.”

The minister said the priority should be fixing RAF mismanagement and reforming the fund’s laws rather than burdening motorists with higher costs.

Millions spent on suspended executives

The RAF’s financial troubles are compounded by massive spending on internal disciplinary processes. According to the Sunday Times, the fund has spent R12.8 million on legal costs for just seven disciplinary hearings and close to R30 million on salaries for at least 16 suspended executives.

Some executives have been sitting at home on full pay for almost two years, while thousands of legitimate accident victim claims remain unpaid.

Government exploring alternative funding model

The Department of Transport is reviewing an alternative funding model for the RAF as a hybrid of private and public contributions to reduce pressure on the fiscus. The review is expected to conclude during the 2026/27 financial year.

The current funding model is also under strain as the growing use of electric, hybrid and gas-powered vehicles reduces fuel consumption and therefore levy revenue.

DA demands reform before refinancing

The Democratic Alliance has condemned the RAF’s request for higher levies, saying the fund must be reformed rather than refinanced.

“The RAF wants motorists to pay more. It has asked National Treasury to raise the fuel levy by 75 cents a litre, to R3 per litre, in the same week that fuel prices hit a record R30 a litre,” said Dr Chris Hunsinger, DA spokesperson on transport.

“More money will not fix the RAF. Its problem is not that motorists pay too little. It is how the money is managed. This is making petrol and diesel far more expensive than it should be. Every rand spent on drawn-out suspensions and senior counsel is a rand that should have gone to accident victims.”

The DA said the model is completely broken and must be reformed immediately.

“Before motorists are asked for another cent, the RAF must show it can manage what it already has. The DA will continue to fight for a fund that is properly run, accountable, and focused on victims rather than on protecting its own executives,” Hunsinger said.

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