Government Coming After Electric Car Owners With New RAF Fee Plan

• The South African government is looking at charging electric vehicle owners a separate fee when buying or renewing their vehicle licence
• These new fees will be implemented to aid the Road Accident Fund, which is funded through a levy added to every litre of petrol and diesel sold
• Transport Minister Barbara Creecy confirmed the plan is being researched, though the exact amount and structure have not been decided yet

Electric car owners in South Africa may soon have an extra cost to think about when renewing their vehicle licence.

Transport Minister Barbara Creecy confirmed in an interview with Moneyweb on 26 May 2026 that the Department of Transport is actively researching a vehicle owner contributory scheme.

This would lead to motorists paying a separate fee toward the Road Accident Fund when buying or renewing their licence disc.

The RAF currently gets most of its money from a levy added to every litre of petrol and diesel sold in the country. The South African Revenue Service collects this levy, which brings in roughly R4 billion a month to compensate road accident victims.

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The problem is that as more South Africans switch to electric vehicles, fuel sales drop, and so does the money going into the RAF.

Why is the RAF in trouble?

The RAF's financial situation has been a growing concern for years. The total amount it could owe in claims reportedly exceeds R500 billion.

A recent court ruling that illegal foreign nationals cannot be excluded from claiming road accident compensation could add a further R400 billion to that figure, though the RAF has since taken the matter to the Constitutional Court.

Creecy said the department plans to partly address the funding gap by introducing a no-fault system and a standard schedule of benefits through the Road Accident Benefit Scheme Bill. But she was clear that a vehicle owner contributory scheme is also on the table.

She acknowledged the government does not yet have a finalised model. Affordability and public transport vehicles as two key concerns that still need to be worked through.

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What does this mean for EV owners?

For anyone who switched to an electric car to save on running costs, this news adds a new burden.

EV owners currently avoid the RAF levy because they don't buy petrol or diesel. The proposed scheme would close that gap by attaching a RAF contribution directly to the licence renewal process instead.

No figures have been announced yet, and implementation has not been confirmed.

Creecy also confirmed that the nationwide rollout of the Aarto demerit points system is on track, with between 50 and 60 municipalities expected to implement it by 1 July 2026.

More on electric vehicles in South Africa

• Briefly News recently reported on Bolt's official electric vehicle launch in Cape Town, and the company's plans for the next phase had many interested.
• A man from China broke down what he pays to charge his EV compared to South Africa.
• A Cape Town content creator paid less than R100 to fully charge his Geely electric car at a Durban mall.

Source: Briefly News