Brief

South Africa AA urges Treasury to cut fuel levies by R3 per litre

The AA says a R3‑per‑litre levy cut would ease pressure on motorists as projected fuel price hikes loom.

By Felo News Desk · Published

The Automobile Association of South Africa (AA) has asked the National Treasury to lower fuel levies by R3 per litre before the November price adjustment, citing early projections that could push petrol prices up to R4.58 per litre.

Projections from the Central Energy Fund suggest 95‑octane petrol may rise by R4.58 a litre and 93‑octane by R4.29, while wholesale diesel could increase between R2.56 and R2.91 per litre. The AA notes these are preliminary figures and not the final November adjustments.

The AA argues the government should fund relief by cutting wasteful spending rather than increasing borrowing. It points to a R3‑per‑litre general fuel levy relief introduced in April, which cost about R17 billion, and calls for longer‑term measures.

CEO Bobby Ramagwede said the Road Accident Fund levy, currently R2.25 per litre, should be abolished and funded through alternative arrangements. He warned that raising the levy would add to consumer pressure.

The association also wants a public review of the basic fuel price formula and a 90‑day plan from the CEF to rebuild strategic fuel reserves and address PetroSA’s future.

Key facts

  • AA requests a R3 per litre cut to fuel levies before November adjustments (bizcommunity.com)
  • Early CEF data project 95‑octane petrol could rise by R4.58 per litre (bizcommunity.com)
  • AA cites a R3‑per‑litre fuel levy relief introduced in April costing R17 billion (bizcommunity.com)
  • CEO Bobby Ramagwede says the RAF levy is R2.25 per litre and should be abolished (bizcommunity.com)

Sources

  • [1] bizcommunity.com — originally reported as “AA calls for fuel tax cuts as November price shock looms”

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