AA seeks fuel-tax cuts as transport costs squeeze families

The Automobile Association (AA) has called for substantial fuel-tax relief, warning that rising transport costs are eroding household budgets and making it harder for families to afford travel to work and education.

In an open letter to Finance Minister Enoch Godongwana, the association sought a further R3-a-litre reduction in fuel taxes before November’s price adjustment. It also called for the Road Accident Fund levy to be abolished and its mandate funded through an alternative arrangement.

The appeal followed fuel-price increases that took effect on 7 October.

AA chief executive Bobby Ramagwede said the pressure extended beyond private motorists, with higher operating costs feeding through to public transport fares and everyday goods.

An education-focused report by Ednews Africa, highlighted the implications for parents, caregivers and students, whose transport expenses compete with school fees, food and other essentials.

The AA said some low-income workers already spent as much as 40% of their earnings commuting. Further increases would leave those households with little room to absorb higher fares.

The association also urged employers to review transport allowances and consider one remote working day a week where practical.

Its broader proposals include a review of the fuel-pricing formula and a plan to strengthen strategic fuel reserves.

Early October estimates cited by the AA pointed to a possible petrol increase of up to R4.58 a litre in November. Those figures were preliminary, change with market conditions and should not be presented as the confirmed November adjustment.

Sources: Automobile Association, open letter dated 8 October; ednews.africa, 17 October.