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Home » DA: Scrap POF levy to reduce fuel price
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DA: Scrap POF levy to reduce fuel price

By staffMay 21, 20262 Mins Read
DA: Scrap POF levy to reduce fuel price
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(Photo: Christine Oelofse/Maroela Media)

The DA wants the Road Accident Fund (ROF) in its current form to be scrapped and replaced as a long-term way to reduce the price of fuel.

Chris Hunsinger, DA spokesperson on transport, says the party plans to approach Transport Minister Barbara Creecy about legislative amendments that could replace the RAF.

According to Hunsinger, motorists currently contribute “several rands per litre” to the RAF every time they fill up with petrol or diesel. However, he argues that the fund wastes this money and fails to carry out its mandate properly.

The RAF levy currently amounts to R2.32 per liter of petrol and diesel, after it was increased by 16c per liter on 1 April.

“The purpose of the RAF is noble, but its execution is a complete failure,” he says.

The DA proposes that the RAF be replaced with a smaller safety net for victims of road accidents, together with compulsory third party insurance for all drivers.

Hunsinger says the RAF is a failed state entity that is plagued by corruption and is unable to pay settlements to hundreds of thousands of road accident victims. He says the fund also spends large sums on administration and court cases.

According to the DA, the RAF was originally intended as a safety net for victims who suffer financial damage due to a road accident without being responsible for it themselves, and where the driver who caused the damage does not have the personal financial capacity to compensate the victim.

“Deserving victims and survivors wait years for any RAF settlement, they are fought in court, and countless unscrupulous individuals have established entire business practices aimed at exploiting the RAF for even the smallest traffic incidents.”

He says the current model does not work and South Africans should no longer pay for it through the fuel price.

“The time to scrap the RAF in its current form is now, and it urgently needs to be replaced as a long-term way to reduce the price of fuel.”

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