South African motorists could soon pay an additional fee when renewing their vehicle licence discs, as Transport Minister Barbara Creecy explores new ways to fund the financially troubled Road Accident Fund (RAF). I looked into what we know so far, what it could cost you, and whether this will actually fix anything.
What's being proposed?
The Department of Transport is investigating a new mandatory fee to be added to your annual vehicle licence disc renewal. Transport Minister Barbara Creecy confirmed in June 2026 that they're conducting a gap analysis and developing a business case to determine how this would work.
Right now, it's still in the research phase. No final decision, no confirmed amount. They're apparently studying how it would affect different groups - public transport operators, lower-income motorists, that sort of thing.
For context, most of us already pay between R600 and R800 per year to renew our vehicle licence discs, depending on the province we're in and the weight of our cars. So this would be on top of that.
Why the government says we need this
The Department of Transport points to two main reasons:
The electric vehicle "gap": The RAF is funded primarily through a fuel levy - currently R2.25 per litre for both petrol and diesel. Every time you fill up, that levy goes straight to the RAF. But electric vehicles and plug-in hybrids don't buy petrol or diesel, so they don't contribute. Yet they're still covered by the RAF in the event of an accident.
EV adoption is still tiny in South Africa, just 2.8% of new vehicle sales in Q1 2026. But the numbers are climbing fast. Fully electric vehicle sales jumped 97% year-on-year in the first quarter, while plug-in hybrid sales rocketed by 430%. So the government's argument is that as more people go electric, the fuel levy model starts to crumble.
Top 6 PHEVs in SA with the longest range
The RAF's financial crisis: This is the real story. The Road Accident Fund is in serious trouble, and the numbers are grim:
- Annual deficits: R8.4 billion (2022/23), R1.6 billion (2023/24), R2.3 billion (2024/25)
- Accumulated deficit: Over R27 billion by the end of 2024/25, according to the Auditor-General
- Total liabilities: Estimated to exceed R600 billion as of early 2026 (though the RAF's use of controversial accounting standards means the true figure is disputed)
- Contingent liabilities: Over R400 billion
The Auditor-General has been issuing adverse audit opinions year after year, flagging non-compliant accounting, material irregularities (including funds being deposited into fraudulent bank accounts), and serious doubts about whether the RAF can even continue to function. Default judgments against the fund nearly tripled from R1.64 billion in 2023/24 to R4 billion in 2024/25. They're sitting with a backlog of more than 320,000 claims and taking an average of over five years to settle.
The cost of owning an affordable car in SA
Why the industry thinks this is a bad idea
Not everyone's convinced that a new fee will solve anything. The Automobile Association has come out strongly against this, with CEO Bobby Ramagwede arguing that the RAF's problems are about mismanagement, not a lack of money.
"The fund collects more money than it currently disburses," he said, which raises an obvious question: if they're already taking in more than they're paying out, why do they need more from us?
The AA also dismissed the EV justification, noting that electric vehicle adoption is still far too low to make a real dent in RAF revenue. They called the ministry's argument " one that does not hold water."
AfriForum agrees, calling the whole thing "nonsensical" until the government can prove they're managing the current funds properly. They've also raised concerns about double taxation. Petrol and diesel drivers would be paying twice, once through the fuel levy and again through the licence disc fee.
What this could mean for you
The truth is, we don't know yet. There's no fee structure, no confirmed amount, nothing concrete.
What we do know is that if this goes through, it would likely apply to everyone when they renew their annual vehicle licence discs, whether you drive petrol, diesel, electric, or hybrid. The department says they're looking at a "hybrid funding model" with both public and private contributions, but what that means in rands and cents is anyone's guess.
If you own multiple vehicles, you'd probably face this fee for each one. Fleet owners and businesses could be looking at significant additional costs, though the department claims they're studying the impact on different groups.
The broader RAF reform picture
This licence disc fee doesn't exist in a vacuum. It's part of a much bigger plan to overhaul the entire RAF through the proposed Road Accident Benefit Scheme (RABS) Bill, which is apparently in its final stages of revision.
The bill wants to replace the current fault-based system with a no-fault model that includes:
- Standardised benefit schedules instead of lump-sum payouts, you have to fight for in court
- Annuity payments (monthly amounts) rather than one big settlement
- Stricter eligibility criteria, including limits on claims by foreign nationals without travel insurance
- Lower legal costs because you wouldn't need to prove fault
The government argues this would slash the RAF's massive liabilities (currently over R400 billion) and create a fairer, more sustainable system. But an independent study by the Actuarial Society of South Africa found that no single model (including RABS) can fix all the RAF's problems. Every option creates new trade-offs around affordability, sustainability, and people's legal rights.
What you can do about it
We're still in the consultation phase, which means there's time to have your say before this becomes law.
Watch for the public comment window: When the department publishes draft proposals in the Government Gazette, there'll be a formal period for public input. Keep an eye on the Government Gazette website or follow reliable motoring news sources.
Prepare fact-based input: If you want to submit comments, stick to how this would actually affect you. Be specific: how many vehicles you own, what you spend on fuel and licence renewals, and whether another fee would genuinely create hardship. Real numbers matter more than angry rants.
Contact your public representatives: Your local MP is supposed to represent your interests. Contact them through the Parliament website or their constituency offices and ask how they plan to vote on RAF-related legislation, and why.
Follow industry organisations: Groups like the Automobile Association are watching this closely and may coordinate responses or legal challenges. Stay updated to understand where this is heading.
The real question nobody's answering
The RAF has been collecting billions in fuel levies for years. R2.25 per litre, every time you fill up. Yet they're sitting with a R27 billion accumulated deficit and over R600 billion in liabilities.
Will throwing more money at this actually fix anything?
The RAF's financial statements show money haemorrhaging through default judgments (they have one lawyer for every 1,500 claims), overpayments, fraudulent claims, and massive backlogs. These are operational failures, not funding shortfalls.
If you drive 15,000km a year in a car that uses 7 litres per 100km, you're already paying R2,362.50 to the RAF annually through fuel purchases alone. That's on top of over R7 per litre in total government levies and taxes.
Adding another fee, without any evidence that they've fixed how they manage the money they already have, feels like being asked to pay twice for a service that doesn't work the first time.
What happens next
The Department of Transport hasn't given a timeline for when they'll make a final decision or when any new fee might kick in. As of mid-June 2026, it's still under investigation.
The broader RABS Bill is reportedly in its final stages and could go to Parliament later in 2026. Any licence disc fee would likely be part of that bigger reform package.
For now, the smartest move is to stay informed, watch for official announcements, and be ready to comment during public consultation periods. Whether you support this or think it's a terrible idea, participating in the process is the only way to influence the outcome.
The takeaway
The RAF is clearly in crisis. The financial mismanagement is documented, the liabilities are astronomical, and hundreds of thousands of claims are sitting in limbo. Reform is desperately needed.
But is asking motorists to pay more the right answer when the underlying problems haven't been fixed? That's the question the government hasn't properly addressed.
We will be watching how this develops and will update you as more details emerge. For now, know what's being proposed, understand the numbers, and decide for yourself whether you want to make your voice heard.
Sources: News24, Moneyweb, EWN, MyBroadband, South African Government, Naamsa, Business Day, Daily Maverick, Times Network, Moonstone Information Refinery, ITWeb.
Disclaimer: This article provides an overview of current government proposals based on publicly available information as of June 2026. It's for informational purposes only and doesn't constitute legal or financial advice. Consult official government sources and professional advisors for specific guidance.
