The RAF noted that it had seen only a single increase in the levy over the past six years, with a 2026\/27 hike of 7 cents taking it to R2.25 per litre.<\/p>\n\n\n\n
However, the fund said it needed more, and has made a proposal to Treasury to increase the tax to R3.<\/p>\n\n\n\n
“Calling for R3 per litre is what the AA terms as consumer tone-deafness, ignoring completely an embattled consumer facing rising inflationary pressure off the back of interest rates, fuel costs and basics like groceries and school fees increasing almost monthly,” the AA said.<\/p>\n\n\n\n
“The AA, as a matter of urgency, calls for the opposite.”<\/p>\n\n\n\n
The AA said that the government should scrap the current R2.25-per-litre RAF levy with immediate effect<\/strong> and find a more appropriate way to finance the fund.<\/p>\n\n\n\n “Gouging the consumer is not the answer, especially considering that net RAF levy collections totalled R47.8 billion during the quoted financial year,” it said.<\/p>\n\n\n\n The association further called on the National Treasury to cut R3 per litre from the general fuel levy<\/strong>, as it did in April 2026, to save South Africans from the record-level fuel prices.<\/p>\n\n\n\n “The AA acknowledges the short-term General Fuel Levy relief that, on a sliding scale, was implemented earlier in the year when National Treasury cut fuel levies by R3 a litre in April, at a cost of approximately R17 billion,” it said.<\/p>\n\n\n\n “We warned at the time, though, that this strategy needed to have a longer-term consumer vision; today, we are digesting the lack of Treasury\u2019s foresight for the longer-term relief position the AA called for.”<\/p>\n\n\n\n Finance Minister Enoch Godongwana said in September that providing more temporary relief via fuel taxes would come at a cost.<\/p>\n\n\n\n The funds would have to be recovered elsewhere, meaning the screws would turn on taxpayers in another way, or the country would be pushed deeper into debt as the government would have to borrow more.<\/p>\n\n\n\n However, the AA challenges this view, saying that the government could cover the cost by cutting waste.<\/p>\n\n\n\n \u201cYear after year, the government has found billions for failing state companies. It can find the money to keep South Africa moving,” the association said.<\/p>\n\n\n\n “We maintain that government can afford to cut the general fuel levy by R3 a litre, which would materially reduce the inflationary impact of fuel price changes.”<\/p>\n\n\n\n The AA noted that 25% of the fuel price goes to tax. Combined with rising inflation, interest rate hikes and all the other cost pressures, South Africans are in crisis.<\/p>\n\n\n\n “Diesel alone has doubled this year, from R17 a litre in January to more than R34,” it said.<\/p>\n\n\n\n Early Central Energy Fund data paints the grim possibility of wholesale diesel rising by a further R2.56 to R2.91 a litre in November. Petrol prices face a grim hike of over R4 per litre.<\/p>\n\n\n\n “This is not inflation, this is extortion,” it said.<\/p>\n\n\n\n \u201cLow-income workers carry the heaviest load. Some already spend as much as 40% of their pay getting to and from work.”<\/p>\n\n\n\n What the AA is asking for:<\/p>\n\n\n\n \u201cSouth Africans are paying more to move than they ever have,” it said. “This is not an AA request; it is rather an instruction to those employed to run this country.”<\/p>\n\n\n\n “The consumer pays your salary, and the consumer is the one staring firmly today at the bread line. As the elected body, you need to provide the relief to those who keep you in your seat, or step aside and let those who will do.”<\/p>\n","protected":false},"excerpt":{"rendered":" The AA says the RAF Levy needs to be scrapped, and National Treasury must provide more relief, as drivers stare down the highest fuel prices in history.<\/p>\n","protected":false},"author":10,"featured_media":858392,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2108190688340799624","_sma_facebook_post_id":"191437357620492_2230479257772473","_sma_instagram_post_id":"17994477561044099","_sma_x_attempts":1,"footnotes":""},"categories":[4],"tags":[6926,19909,3796,2171],"class_list":["post-878985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-aa","tag-diesel-price","tag-national-treasury","tag-petrol-price"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=878985"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878985\/revisions"}],"predecessor-version":[{"id":878998,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878985\/revisions\/878998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/858392"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=878985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=878985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=878985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Worse to come<\/h2>\n\n\n\n
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