Three car factories in one small South African city, and shutting down the RAF is a bad idea

South Africa’s Automobile Association (AA) has condemned the local government’s plan to impose additional costs on motorists days after petrol and diesel surged past R30 per litre.

On Wednesday, 7 October 2026, petrol prices rose by R3.33 per litre, while diesel users were hit with a R3.58 per litre hike.

According to the AA, these hikes raised South Africa’s fuel prices to the highest levels the country has ever seen.

“Adding insult to injury is the Road Accident Fund, which has the audacity to include a request to increase the RAF Levy for both petrol and diesel locally,” said the AA.

The levy currently adds R2.25 per litre to the price of fuel; however, the RAF argues that it has not been adjusted for inflation and that it is losing revenue as a result.

The RAF proposed the levy should be raised from R2.25 to R3.00 per litre, an increase of 33%.

Global Brent crude prices rose once again to over $104 per barrel on worries about potential US strikes on Iran and Hurricane Isaias expected to make landfall in the Gulf of Mexico soon.

That said, US President Donald Trump said Washington was having productive discussions with Iran, and vowed not to attack again until after the 3 November midterm elections.

However, the US president also said that a naval blockade of Iran’s ports would remain in full effect.

The South African rand remained unaffected, trading at R16.50 against the US dollar once again this morning.

5 important things

The small South African city with 3 car factories: The city of Gqeberha in the Eastern Cape is home to three different car factories, making it one of South Africa’s largest automotive production centres. The coastal city has played a major role in shaping the country’s car industry and continues to do so to this day with facilities that produce cars and engines for three automakers: Isuzu, Ford, and BAIC [TopAuto].

OUTA says shutting down the Road Accident Fund to save R2.25 per litre is a bad idea: The Organisation Undoing Tax Abuse (OUTA) said the Road Accident Fund (RAF) levy of R2.25 per litre added to pump prices in South Africa is too high. It believes that if the fund were managed properly, motorists would be paying around R1 less per litre towards the RAF [MyBroadband].

Great news for South Africa’s biggest petrol company: This year’s oil price rally has produced one clear winner: Sasol is the top-performing emerging-market stock outside Asia, and many analysts are betting its bull run has further to go. Sasol returned almost 120% this year, building on last year’s 45% gain and putting it on track for its best annual performance since at least 1991 [Bloomberg].

Porsche 2035 roadmap confirms new halo mid-engined hypercar: Porsche will finally introduce a new halo mid-engined hypercar, but exclusive customers will only be able to take delivery of it 10 years from now [CarMag].

Audi plant facing closure needs ‘viable’ solutions, says its CEO: Audi’s factory in Neckarsulm, one of the Volkswagen Group’s four German production sites ​facing possible closure, needs a “viable” perspective to ‌secure its future, the premium brand’s CEO told workers on Thursday [Reuters].