South African motorists are already paying record fuel prices. Now another possible cost is on the way. The Road Accident Fund (RAF) wants a higher RAF levy on petrol and diesel. The request appears in its annual report for the 2025/26 financial year.
This guide explains the proposal in simple terms. It is easy to follow and sticks to the facts reported so far.
What the RAF is asking for
The RAF levy is a charge added to every litre of fuel sold in South Africa. Today it stands at R2.25 per litre, after a 7 cent increase on 1 April 2026.
The RAF now wants the levy raised to R3 per litre. The simple maths is easy to do. That is 75 cents more per litre, or roughly a 33% increase.
One point needs to be clear. This is a proposal, not a final decision. The RAF says it will take its request to the National Treasury. It also wants capital support from Treasury, on top of a stronger levy. In other words, the fund is looking for help from two directions at once.
Why the fund says it needs more money
The RAF describes its finances as undercapitalised. Its liabilities exceed its assets by R439.5 billion. That is a huge gap, and the fund says it will keep exploring ways to improve its solvency.
The fund also depends heavily on one source of income. According to its report, net fuel levies make up 99.4% of total revenue. In 2025/26, net levy collections came to R47.8 billion. The easy way to understand the problem is this: when fewer litres of fuel are sold, the RAF collects less money.
Two things have put the fund under pressure:
- A long freeze. The levy was held at R2.18 per litre from 2021/22 until 2025/26.
- Weaker fuel sales. Higher pump prices, driven by the conflict in the Middle East, reduced the amount of fuel sold.
As a result, the RAF’s revenue fell by 4.6%, from R50.1 billion in 2024/25 to R47.8 billion in 2025/26.
Key numbers at a glance
A table makes the figures simple to compare.
| Item | Figure |
|---|---|
| Current RAF levy | R2.25 per litre |
| Proposed RAF levy | Up to R3 per litre |
| Levy freeze period | R2.18 per litre, 2021/22 to 2025/26 |
| Net levy collections in 2025/26 | R47.8 billion |
| Net levy collections in 2024/25 | R50.1 billion |
| Share of RAF revenue from fuel levies | 99.4% |
| Liabilities above assets | R439.5 billion |
Fuel prices are already at record levels
The timing of the request is hard for many households. Fuel prices have climbed sharply this year because of the conflict between the United States and Iran. The war pushed global oil prices up in early 2026.
Here is how the oil price moved:
- In the middle of May, oil went above $110 per barrel.
- A brief ceasefire brought some relief. Prices slipped toward $72.50 in mid June and touched $71.57 in July.
- Fighting then resumed, and prices were back above $100 by mid September.
- Since then, oil has moved between $96 and $109 per barrel.
The effect at the pump has been severe. In October 2026, petrol drivers on the inland price pay a record R30.25 per litre. The inland wholesale price of 50ppm diesel has also hit a record, at R33.20 per litre.
What relief did Treasury provide?
The National Treasury stepped in earlier in the year. It is an easy story to follow in four steps:
- On 1 April 2026, Treasury cut the General Fuel Levy by R3 per litre for both petrol and diesel.
- The cut stayed in place through May for petrol. Diesel drivers got an extra R0.93 per litre off.
- In June, Treasury halved the relief to R1.50 per litre for petrol and R1.96 per litre for diesel.
- In July, the full General Fuel Levy returned for both fuels.
Fuel prices kept rising after that. Groups such as AfriForum have asked for more cuts to fuel taxes. Finance Minister Enoch Godongwana has said motorists should not expect further relief.
His reasoning is simple. Permanently offsetting the increases through the budget would shift the cost to taxpayers or push up government borrowing. He added that giving consumers extra relief has to be weighed against other spending needs, taxes and debt.
What this could mean for motorists
Nothing has been approved yet. Still, a simple example shows what is at stake.
If the full 75 cent rise were passed on at the pump and nothing else changed, filling a 50 litre tank would cost about R37.50 more. For someone who fills up every week, that adds up quickly. For taxi operators, delivery drivers and people with long commutes, the effect could be larger.
There is also a bigger question. The RAF levy and the General Fuel Levy are different charges. Treasury has been cutting one while the RAF now asks for the other to go up. That tension will likely shape the debate in the coming months.
Supporters of a higher levy will say the fund needs a stronger income to stay afloat. Critics will say households are already stretched. Both views have weight, and the final call rests with National Treasury.
What to watch next
The easy answer for now is to wait and watch. Here are the main things to keep an eye on:
- Whether National Treasury accepts the RAF’s request, and by how much.
- Whether any capital support is offered to the fund.
- The next monthly fuel price adjustment, which will show where petrol and diesel are heading.
- Movements in the oil price, which continues to swing between $96 and $109 per barrel.
For official information on tax and levy decisions, you can visit the National Treasury website. To learn more about the fund itself, see the Road Accident Fund website.
The bottom line
The RAF wants its fuel levy to rise from R2.25 to as much as R3 per litre. It says its finances are under heavy strain, its income depends almost entirely on fuel sales, and those sales have dropped as prices have soared.
The request is not a done deal. For now, motorists are left with a simple truth: fuel is expensive, and another levy rise would add to the pain. The next move belongs to Treasury, and drivers will be watching closely.
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