The Automobile Association (AA) has sounded the alarm over a possible fuel price increase of up to R4.58 a litre in November, which could further pressure commuters, transport operators, and household budgets. This potential increase comes just weeks after record fuel price hikes took effect on October 7. The AA has called on National Treasury to cut fuel taxes, warning that motorists cannot afford another increase.
The Road Accident Fund (RAF) has proposed raising its levy from R2.25 to R3 a litre, an increase of 75 cents, prompting the AA to call for the levy to be abolished and alternative funding arrangements considered. The AA's CEO, Bobby Ramagwede, expressed concern over the proposed increase, stating that it would be unfair to place additional costs on motorists. The RAF's financial position should not be addressed by gouging the consumer, especially considering that net RAF levy collections totalled R47.8 billion during the 2025/26 financial year.
The AA criticised the government's approach to fuel-price relief, saying the R3-a-litre reduction in fuel levies introduced in April provided only temporary relief. The measure cost the fiscus approximately R17 billion. The organisation said National Treasury should consider further relief rather than increasing fuel-related taxes. Ramagwede stated that this is an opportunity for National Treasury to soften the consumer blow through real levy relief.
The AA challenged Finance Minister Enoch Godongwana's concerns that further fuel-price relief could increase pressure on taxpayers or government borrowing. The organisation believes that the government should look at reducing wasteful expenditure to fund further relief. Ramagwede suggested that the government could recover the costs from waste, citing that year after year, the government has found billions for failing state companies.
The AA is calling for the general fuel levy to be reduced by R3 a litre, which would help reduce the inflationary impact of rising fuel prices. The organisation said taxes currently account for a significant portion of the price motorists pay at the pump. Diesel prices have also come under pressure, rising from about R17 a litre in January to more than R34 a litre, with early CEF data indicating that wholesale diesel could increase by another R2.56 to R2.91 a litre in November.
The AA has also called on newly appointed CEF Group CEO Dr Tshepo Mokoka to address South Africa's fuel-security position. The organisation wants the CEF to publish a plan within 90 days to rebuild the country's strategic fuel reserves and clarify the future of PetroSA. Strengthening domestic fuel-security mechanisms could provide greater protection against international oil-price shocks.
The AA has outlined four key demands, including cutting fuel taxes, conducting a public review of the basic fuel price formula, publishing a plan to rebuild strategic fuel reserves, and reviewing transport allowances. The organisation said it would continue pressing government for measures aimed at reducing the burden of fuel costs on consumers.
Key points
- The Automobile Association warns of a possible R4.58 fuel price increase in November.
- The AA calls for a R3 reduction in the general fuel levy to alleviate pressure on motorists.
- The organisation also requests a plan to rebuild strategic fuel reserves and clarify PetroSA's future.
