Transport Minister Rejects Record Fuel Levy Hike for Road Accident Fund
Transport Minister Barbara Creecy has blocked a proposal by the Road Accident Fund to push its levy to R3.00 per litre. The current levy sits at R2.25 per litre. A R0.75 increase would mark the largest jump in the fund’s history.
Responding to questions from MK Member of Parliament Adil Nchabeleng, Creecy stated she will not agree to the hike at this time.
She added that the RAF did not support measures that force taxpayers to carry the financial weight of its institutional inefficiencies.
Financial Insolvency and Mounting Liabilities at the Fund
The proposed increase appeared inside the fund’s 2025/26 annual results. The organization argued that higher levies are necessary to offset declining fuel sales across South Africa.
Official figures show the fund remains under-capitalised. For the financial year ending 31 March 2026, total liabilities reached R452.4 billion against assets of only R12.9 billion, leaving liabilities exceeding assets by R439.5 billion. Most of this total consists of mandatory claim payouts.
As long as I’m in this job, we will not apply to the National Treasury for an increase in the fuel levy,
Creecy said. What we have to do is sort out the mismanagement that has happened at the RAF for a long time.
Disputed Vehicle Licence Disc Tax Proposals for New Energy Vehicles
While the fuel levy increase remains blocked, the fund’s annual report also introduced a separate tax proposal targeting vehicle licence disc renewals. This measure aims to offset falling fuel revenue driven by the rising adoption of electric vehicles and hybrids.
The report did not specify a fee amount or whether the tax would apply strictly to new energy vehicles or all motorists. Creecy first raised a similar concept in May 2026 to turn licence disc renewals into a revenue stream for the agency.
Critics argue the plan could penalize drivers of traditional petrol and diesel cars twice. These motorists already pay the fuel levy at the pump and would face an additional annual fee during disc renewals.
Automobile Association of South Africa CEO Bobby Ramagwede criticized the justification for the new tax. EV adoption is very slow,
Ramagwede said, pointing out that operational failures drive the fund’s financial deficit rather than a shift in vehicle technology.
Frequently Asked Questions About the Road Accident Fund
What is the current rate of the Road Accident Fund levy?
The levy is currently set at R2.25 per litre of fuel sold in South Africa. The fund attempted to raise this figure to R3.00 per litre before the transport minister intervened.
How large is the financial deficit at the Road Accident Fund?
For the financial year ending 31 March 2026, total liabilities stood at R452.4 billion against assets of R12.9 billion. This leaves liabilities exceeding assets by R439.5 billion.
Who opposed the proposed fuel levy increase?
Transport Minister Barbara Creecy blocked the application to the National Treasury.
Related reading