Good News for Motorists As Transport Minister Barbara Creecy Rejects Proposed Raf Fuel Levy Hike

• South African Transport Minister Barbara Creecy confirmed her department will not support a proposed 33% hike in the Road Accident Fund fuel levy
• The RAF had proposed raising the levy from R2.25 to R3.00 per litre to address serious financial deficits within the fund
• The minister pointed to existing financial pressure on motorists and outlined internal reforms as an alternative path forward

South African motorists received welcome news when Transport Minister Barbara Creecy confirmed she would not be applying to the National Treasury for an increase in the Road Accident Fund (RAF) fuel levy during her tenure.

The RAF had put forward a proposal in its 2025/26 annual report to raise the levy from R2.25 to R3.00 per litre, a 33% jump intended to address the agency's growing financial shortfall. Minister Creecy made clear she would not back the move, citing the strain that already-elevated fuel prices place on South African drivers.

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RAF to focus on internal reform

Rather than passing the cost on to motorists, the Department of Transport said it would concentrate on tackling the financial mismanagement and inefficiencies that have long plagued the RAF. A newly appointed CEO, Waseem Carrim, takes office on 1 November 2026, supported by an interim board tasked with overhauling the agency's finances and restructuring how claims are processed.

According to reports, the department outlined three priorities to stabilise the fund: eliminating administrative waste, advancing legislative reform through the proposed Road Accident Benefit Scheme (RABS) Bill, and investing in road safety initiatives aimed at bringing down the number of traffic fatalities and, by extension, the volume of claims.

New levy on vehicle registrations under consideration

While the fuel levy increase was turned down, a separate proposal from the RAF's annual report remains on the table. The report suggested introducing a levy tied to vehicle registrations and licence disc renewals, targeting electric vehicles in particular. Because EVs do not contribute to fuel tax revenue but are still entitled to claim from the RAF after accidents, this model would bring them into the funding net. Minister Creecy has previously indicated openness to exploring registration-linked funding as fuel sales continue to decline.

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For now, the rejection of the fuel levy hike offers South African drivers some financial breathing room, while the RAF faces pressure to put its own house in order before looking to motorists for more.

More stories on South African fuel prices

• Briefly News recently looked at South Africa’s 1980s prices, with comparisons of petrol, cars and houses leaving social media users debating how much life has changed.
• A South African petrol attendant appealed for help after a truck driver allegedly filled up with more than R60,000 worth of fuel and drove off without paying.
• A Tshwane single mother’s emotional reaction after paying R30.25 per litre for petrol struck a nerve with South Africans struggling with rising fuel costs.

Source: Briefly News