The Automobile Association of South Africa (AA) has called on National Treasury to cut fuel levies by R3 a litre ahead of November's price adjustment, warning that early projections point to a further petrol increase of up to R4.58 a litre.
The projections, based on early data from the Central Energy Fund (CEF), indicate that 95-octane petrol could rise by R4.58 a litre and 93-octane petrol by R4.29. Wholesale diesel prices could increase by between R2.56 and R2.91 a litre, while illuminating paraffin could rise by R5.
These are preliminary figures and do not represent the final November adjustments.
The call follows the fuel price increases that took effect on 7 October. The AA said motorists were already under pressure from rising transport, food and household costs, and warned that further increases could add to inflation and delay interest rate relief.
AA targets fuel taxes
The AA wants National Treasury to cut fuel taxes by R3 a litre, arguing that the government should fund the relief by reducing wasteful spending rather than increasing borrowing.
The association pointed to the R3-a-litre general fuel levy relief introduced in April, which it said cost about R17 billion, but argued that longer-term measures were needed.
It also criticised a proposal to increase the Road Accident Fund (RAF) levy, which currently stands at R2.25 a litre. The AA said the levy should instead be abolished and alternative funding arrangements found for the fund.
“The RAF levy is currently R2.25 per litre,” said Bobby Ramagwede, CEO of the AA. He argued that increasing the levy would add to the pressure on consumers already facing rising costs.
The AA also called for a public review of the basic fuel price formula, including how the cost of locally refined fuel is calculated, and asked the CEF to publish a plan within 90 days to rebuild strategic fuel reserves and address the future of PetroSA.
Transport costs under pressure
The association warned that fuel price increases affect more than private motorists, as taxi, bus and e-hailing operators may pass higher operating costs on to passengers.
It said some low-income workers already spend as much as 40% of their pay on commuting.
The AA also urged employers to review transport allowances and consider allowing one day of remote work a week where possible to help reduce commuting costs.
The association's calls come as South Africa enters Transport Month, with the AA arguing that fuel affordability is closely linked to people's ability to get to work, seek employment and take children to school.