COSATU welcomes Creecy’s rejection of RAF fuel levy hike

Transport Minister Barbara Creecy has rejected a proposal to increase the Road Accident Fund (RAF) fuel levy to R3, noting that that would not happen while she’s in office.

Creecy has told the media that she does not support the request because motorists are already under strain due to rising fuel costs.

She noted that instead her department would have to figure out the alleged mismanagement of the Road Accident Fund.

READ MORE: Moneyweb/Increase in RAF levy in fuel price ‘won’t happen on my watch’ – Creecy

COSATU has welcomed Creecy’s intervention, noting that it would have been a “devastating blow” to workers, commuters and the economy.

“COSATU commends the progressive intervention by the Minister for Transport to reject the callous request by the Road Accident Fund for an insensitive 75 cents per litre or 33% increase in the Fuel Levy, said the organisation’s Matthew Parks.

COSATU stressed that the urgent priority should instead be to tackle the alleged corruption, wasteful expenditure and financial leakages at the RAF.

It further called on the government to prioritise the retabling of the RAF Bill in Parliament to address the Fund’s “structural fault lines”, to ensure that its limited resources are directed towards providing relief to working-class claimants.

“Compensation must be structured upon legitimate medical and loss of income claims and not be utilised to subsidise the wealthy and their fancy lawyers’ expensive lifestyles.”

At the same time, Parks urged Parliament to expedite passing the Second Special Appropriation Bill, which provides R10 billion for the Central Energy Fund’s Equalisation Fund. He said it should be passed before the end of October.

“This will enable government to provide badly needed Fuel Levy relief for commuters. This would reduce inflation and thus the likelihood of yet another devastating repo rate hike at the Reserve Bank’s November Monetary Policy Committee meeting,” said Parks.