Faced with significant hikes in fuel prices, South African drivers are cutting back on their driving habits as they navigate the financial strain on their household budgets. April saw a dramatic increase in fuel costs, with petrol prices spiking by R3.06 per litre and diesel reaching a record R7.51 per litre. In response to the economic pressure, the government implemented a temporary tax relief of R3 per litre. Despite this measure, May brought further hikes, with petrol rising by an additional R3.27 per litre and diesel by R6.18 per litre.
As a result, consumers are adjusting their travel behaviours, according to new data from Discovery Insure. The statistics reveal a 35 percent reduction in fuel purchases in April, alongside a 10 percent drop in the number of trips taken. Overall driving distances decreased by 9 percent, even during the typically busy Easter holiday period. This shift reflects a growing trend of motorists becoming more judicious about their vehicle usage amid soaring fuel costs.
Discovery Insure’s CEO, Robert Attwell, noted that this change signifies that drivers are increasingly discerning about when and how they use their cars. Most of the fuel spending is now directed towards essential journeys, such as commuting, school transport, and shopping, as highlighted by additional data from Discovery Bank. Meanwhile, alternative transportation options like ride-hailing services are gaining traction, particularly among younger individuals aged 18 to 30.
Looking ahead, diesel users might find some respite with expected wholesale price reductions of up to R2.44 per litre. However, petrol prices are anticipated to rise further, potentially increasing by around R1.69 per litre. The National Treasury has indicated that the temporary fuel levy relief, introduced earlier in the year, may begin to phase out in June, contingent on the stabilization of fuel prices.