The Road Accident Fund is considering asking National Treasury to increase its fuel levy to as much as R3 a litre as pressure on its finances continues to grow.

News24 reports that the proposal is being considered as the RAF struggles with mounting liabilities and cash-flow pressure. The same report says 23 suspended employees are costing taxpayers about R26 million a year.

Those two figures, the proposed R3 levy and the R26 million annual suspension cost, have not been confirmed in the official sources reviewed and should therefore remain attributed to News24.

RAF levy already increased in 2026

Official tax changes confirm that the RAF levy increased by seven cents from 1 April 2026, taking it from R2.18 to R2.25 a litre on both petrol and diesel.

That levy is charged on every litre of fuel sold and remains one of the RAF’s main sources of income.

Any increase to R3 a litre would require government approval and would add further pressure on motorists already paying higher fuel-related taxes.

Parliament flags RAF financial gap

Parliament’s Standing Committee on Public Accounts has repeatedly raised concerns about the RAF’s financial position.

In February 2026, SCOPA said the fund faced estimated liabilities of nearly R100 billion compared with annual income of about R50 billion. It also highlighted the financial cost of keeping large numbers of employees on paid suspension for extended periods.

Earlier that month, Parliament said more than 50 RAF employees had been placed on paid suspension for over three-and-a-half years without finalised disciplinary cases or proven corruption.

Funding model remains under pressure

The RAF’s financial problems are not new.

The Department of Transport has previously described the fund’s operating model as financially unsustainable, citing rising liabilities and insufficient income to keep up with claim settlements.

Official 2026 transport planning documents also show that government is continuing work on reforms to the RAF compensation system, including changes aimed at improving long-term sustainability.

For now, News24 reports that increasing the levy to R3 a litre is one of the options under consideration, but no official decision has been announced.