Creecy rules out fuel levy hikes as Ramaphosa considers possible relief

South African motorists facing record fuel prices have received some reassurance from Transport Minister Barbara Creecy, who says she will not seek an increase in the fuel levy while she remains in office.

Her comments come amid growing pressure on the government to ease the cost of filling up, with fuel taxes once again under scrutiny and reports of a proposed increase to the Road Accident Fund (RAF) levy sparking concern.

The RAF levy currently stands at R2.25 per litre. Reports that the fund wanted to increase it to R3 per litre prompted renewed questions about whether motorists could face another increase at the pump.

Creecy has ruled out pursuing such an increase during her tenure.

“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 told eNCA.

She added that the priority should be addressing long-standing mismanagement at the RAF rather than placing further pressure on consumers.

Creecy outlines plan to address RAF problems

Creecy identified three priorities for putting the RAF on a more sustainable footing: improving its finances and management, reforming legislation to introduce a form of no-fault compensation, and reducing road accidents and fatalities to bring down claims against the fund.

The RAF provides compensation to qualifying victims of road accidents and is funded largely through a levy on fuel.

However, motorists could still face changes to how the fund is financed. Deputy Transport Minister Mkhuleko Hlengwa previously said the government was considering a hybrid funding model that could include contributions beyond the existing fuel levy.

Depending on the final model, this could have implications for motorists when renewing their vehicle licences.

The government has also appointed Waseem Carrim as the RAF’s new chief executive. Carrim previously led the National Youth Development Agency (NYDA), where he oversaw nine consecutive clean audits.

The appointment comes as the fund faces pressure to improve its financial management and address concerns about its operations.

Fuel taxes remain under scrutiny

Motorists currently pay several fuel-related charges, including the General Fuel Levy and the RAF levy.

The General Fuel Levy stands at R4.10 per litre for petrol and R3.93 per litre for diesel, while the RAF levy adds another R2.25 per litre.

These charges have become a major focus as fuel prices rise, increasing the cost of commuting, transporting goods and running businesses.

The government has not reintroduced the temporary fuel tax relief measures used during an earlier fuel price spike this year.

Various organisations, including the ANC, the African Transformation Movement (ATM) and the Federation of Unions of South Africa (Fedusa), have called for immediate reductions in fuel levies to ease the burden on households and businesses.

However, the prospect of renewed relief remains uncertain, with the government weighing the impact on consumers against the pressure any tax reduction could place on public finances.

Ramaphosa says fuel relief is being considered

President Cyril Ramaphosa has indicated that the government is considering possible measures to provide relief from high fuel prices.

Speaking about the issue, he stressed that any intervention would need to account for the country’s financial position and the effect on government reserves.

“We are now giving consideration. It’s a budgetary issue. It does actually eat into our country’s reserves and our country’s fiscal position. We’ve got to consider the impact of anything that we can do,” Ramaphosa said.

His comments suggest that relief has not been ruled out, but no specific measures or implementation dates have been confirmed in the information available.

For now, Creecy’s position offers reassurance that she will not pursue an increase in the fuel levy while serving as transport minister. Whether motorists will receive any reduction in fuel taxes, however, will depend on the government’s broader discussions about affordability and the national budget.

Follow Joburg ETC on Facebook, Twitter, TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com

Source: IOL