Creecy pushes back against RAF’s plan to charge motorists more

Ask AI 2minTransport Minister Barbara Creecy has rejected the RAF's proposed 33% fuel levy increase, saying motorists should not bear the cost of the fund's financial and administrative failures

Transport Minister Barbara Creecy has refused to approve a proposed increase in the Road Accident Fund (RAF) fuel levy, stating that motorists should not be expected to carry the financial burden of the fund’s institutional failures.

The Minister said this in a written parliamentary reply after uMkhonto weSizwe Party MP Adil Nchabeleng asked her what measures had been put in place to address the RAF’s financial mismanagement, wasteful expenditure and administrative inefficiencies before asking motorists to pay more.

Nchabeleng also questioned whether it was fair to expect struggling workers, pensioners and ordinary South Africans to finance the consequences of the fund’s failures through higher fuel levies.

The RAF has proposed increasing its fuel levy from R2.25 to R3 per litre, which would add 75 cents to the cost of every litre of fuel bought by motorists. The proposal was outlined in the fund’s 2025/26 annual report, with the RAF stating that it needed additional funding to address its financial difficulties

“The Minister will not agree to an increase of the Road Accident Fund’s portion of the fuel levy at this time,” Creecy said.

“The RAF has implemented the change in accounting treatment account for its claims liabilities in accordance with GRAP 19, improving the audit outcome to an unqualified audit opinion on the Annual Financial Statements.”

Creecy said the RAF was also working to prevent financial losses by improving its IT systems to detect duplicate, incorrect and excessive payments.

To address the claims backlog, the fund has introduced a payment strategy that prioritises older claims that meet the requirements for payment.

It has also set up a dedicated project to reduce the backlog and speed up claims processing.

On accountability, Creecy said the RAF had taken steps to recover money from employees responsible for financial misconduct, while disciplinary action and criminal charges had been pursued where appropriate.

“The RAF acknowledges the financial pressures facing road users, workers, pensioners and households, and does not support the position that motorists should bear the consequences of institutional weaknesses,” she said.

“Accordingly, the position is that any consideration of future funding measures must be balanced against the interests of road users and taxpayers, while ensuring that ongoing efforts to improve governance, strengthen consequence management.”