The Automobile Association (AA) has urged the National Treasury to implement an immediate reduction in fuel taxes, cautioning that petrol prices might rise by up to R4.58 per litre in November if current trends are maintained.
This appeal follows recent fuel price escalations effective October 7th, which brought both petrol and diesel prices to unprecedented highs, thereby intensifying financial strain on South African households and businesses.
The AA's request surfaces amid the Road Accident Fund's (RAF) annual report for the 2025/26 fiscal year, which suggested an increase to the RAF levy component of the fuel price.
Currently, the RAF levy is set at R2.25 per litre, following a seven-cent increment in April. The AA expressed serious concern that a proposed hike to R3 would place additional burdens on consumers already grappling with escalating living expenses.
The organization advocated for the complete abolition of the RAF levy, suggesting that alternative methods should be explored to finance the RAF's mandated functions.
Bobby Ramagwede, the CEO of the AA, stated that the consideration of such a path by the new RAF CEO, Waseem Carrim, appointed by Cabinet recently, was deeply worrying. He emphasized that the RAF's financial standing should not be managed by imposing extra costs on drivers.
Ramagwede further commented on concerns regarding the RAF being under-capitalized, noting that liabilities surpass assets due to decreased fuel sales. He countered that penalizing consumers is inappropriate, especially since net RAF levy collections reached R47.8 billion during the specified financial year.
Призывы к долгосрочному снижению топливных налогов
The AA also criticized the government's strategy for providing fuel price relief, arguing that the R3-per-litre decrease in fuel levies introduced in April offered only short-term assistance. This measure reportedly cost the national treasury around R17 billion.
The organization advised the National Treasury to contemplate further relief measures instead of raising fuel-related taxes. Ramagwede asserted that this is the moment for the National Treasury to alleviate consumer hardship through genuine levy relief, contrasting it with the approach of increasing levies.
Furthermore, the AA disputed Finance Minister Enoch Godongwana's worries that additional fuel price relief might increase pressure on taxpayers or necessitate higher government borrowing. The organization suggested that a more honest assessment of the situation should begin by examining the costs associated with the government wage bill and overall spending, viewed through the perspective of the struggling taxpayer.