South Africa’s fuel retailers call for compulsory motor insurance

The Fuel Retailers Association in South Africa has proposed scrapping the country’s Road Accident Fund (RAF) in favour of a mandatory insurance scheme.

The proposal was one of several made to parliament as the government considers its options to reduce record-high petrol prices, according to a monitored report.

The Association, which represents the country’s fuel service station owners, argues that the mandatory motor insurance scheme could charge a flat fee – not linked to the petrol pump price.

South Africa’s Road Accident Fund offers protection to road accident victims, with money raised primarily from a levy attached to the Basic Fuel Price. The RAF levy was set at ZAR2.18 (15US cents) per litre in April 2021 and remains unchanged in the 2022 financial year.

The levy amounts to more than 10 percent of the fuel price and contributes close to ZAR45bn ($3bn) a year to the RAF.