AA calls for fuel levy scrapping amid record price hikes

This week’s fuel price hike, which now sees South Africans paying more at the pumps than ever, has been condemned by the Automobile Association of South Africa (AA).

In an open letter to the Ministry of Finance on Thursday, the AA calls for the scrapping of fuel levies.

This as early data from the Central Energy Fund signals a further possible spike of over R4 per litre in November.

The AA said the Road Accident Fund (RAF), in publishing its annual report for the 2025/26 financial year, requested to increase the RAF Levy for both petrol and diesel.

The RAF’s request to increase this levy from the current R2.25/litre to R3/litre has been met with fierce opposition from the AA, saying it amounts to ‘tone-deafness, completely ignoring an embattled consumer facing rising inflationary pressure off the back of interest rates, fuel costs and other basics’.

The AA has called for the abolishment of the RAF Levy with immediate effect and for more appropriate ways to solve the RAF’s mandate.

“For the new RAF CEO, Waseem Carrim, appointed by Cabinet just a few weeks ago, to even be considering this path is beyond concerning,” said AA CEO Bobby Ramagwede.

“We have read with concern comments intimating that the RAF remains under-capitalised, with liabilities exceeding assets based on reduced fuel sales. Gouging the consumer is not the answer, especially considering net RAF Levy collections totalled R47.8 billion during the quoted financial year.

“This is actually when National Treasury steps in and softens the consumer blow through real levy relief, versus levy hikes as the way forward.

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