Call for transparency on fuel levy allocation and spending

The looming increase in the fuel levy will have immediate and far-reaching consequences for consumers and the economy.

This is according to the Automobile Association (AA) which says any increase in fuel ‘inevitably drives up transport and operational costs, further intensifying inflation’.

“Fuel is a critical input cost across all sectors of the economy,” the AA said in a statement.

ALSO READ: Fuel levy hike to hit consumers as road freight costs rise, warns transport association

“Lower-income households, which spend a greater share of their income on transport, will be disproportionately affected by this rise.”

The association said while it understands the need to address fiscal pressures, ‘turning to fuel levies to fill budget gaps is unsustainable’.

They further called for transparency on how these funds are allocated and used.

“With the new adjustments in June, the combined cost of the GFL and the Road Accident Fund (RAF) Levy will exceed R6.00 per litre in some areas—accounting for more than 30% of the total pump price before adding the base fuel cost, distribution margins, and retail mark-ups,” the AA said.

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