Transport Minister Barbara Creecy has refused to back the Road Accident Fund’s (RAF) proposed 75-cent fuel levy increase, slamming the years of financial mismanagement at the troubled entity.
Creecy made it clear that motorists would not be expected to foot the bill for the fund’s financial problems while she remained in office.
“As long as I’m in this job, we will not apply to National Treasury for an increase in the fuel levy. I think consumers are under enough pressure,” she said in an interview.
Her remarks come after the RAF proposed increasing its levy from R2.25 to R3 per litre, a move that would add R37.50 to the cost of filling a 50-litre tank.
The proposal emerged as petrol prices climbed to record highs, with motorists already facing the prospect of another steep increase in November.
Creecy takes aim at RAF mismanagement
Rather than demanding more money from motorists, Creecy wants the fund to get its finances in order.
“What we have to do is sort out the mismanagement that has happened at the Road Accident Fund for a long time,” she said.
The minister confirmed that Cabinet had agreed to the appointment of a new RAF chief executive officer after the previous board was dissolved last year.
She said the fund needed stronger financial controls to stop wasteful spending and restore accountability.
“We’ve got to sort out the finances and the management so that we stop wasting money,” Creecy said.
Her criticism comes amid revelations that the RAF spent approximately R12.8 million on disciplinary hearings involving seven suspended executives.
According to a report, the fund has also spent nearly R30 million on salaries for at least 16 suspended senior officials.
The disciplinary proceedings involve allegations ranging from dishonesty and negligence to bribery.
Some officials have reportedly remained on full pay for almost two years while their cases continue.
RAF faces massive financial crisis
The fund’s financial troubles extend well beyond its disciplinary costs.
Its latest annual report shows that liabilities exceed assets by approximately R439.5 billion, leaving the organisation technically insolvent.
The RAF collected R47.8 billion in levy revenue during the 2025/26 financial year, down from R50.1 billion the previous year.
Despite these financial pressures, Creecy believes reforming the fund’s compensation system is more urgent than increasing the levy.
She wants changes to the RAF legislation to introduce a defined schedule of benefits and a no-fault compensation system.
The proposed changes would reduce costly litigation and make compensation more accessible to accident victims.
Creecy criticised the current system, which she believes allows excessive claims and legal costs while some victims receive nothing.
“It’s completely outrageous to me that people can demand exorbitant amounts of money while other people are not receiving any benefits whatsoever,” she said.
She also identified reducing road accidents and fatalities as a priority to ease the growing demand for compensation.
AA demands fuel levy relief
Creecy’s refusal follows the Automobile Association’s (AA) call for government to scrap the RAF levy altogether.
In an open letter to Finance Minister Enoch Godongwana on Thursday, 8 October, the association condemned the proposed increase and called for urgent relief for motorists.
The AA warned that early fuel price data pointed to a possible petrol increase of up to R4.58 per litre in November.
These projections remain preliminary, with the final adjustment dependent on international oil prices and the rand-dollar exchange rate.
Although Creecy has ruled out seeking a higher RAF levy, the existing R2.25 charge remains in place.
Government is also exploring alternative ways to finance the fund, including a possible levy linked to vehicle registration and licence renewals.
No such replacement charge has been approved.