Amid soaring fuel prices, South African motorists are cutting back on driving to manage the increased financial strain, as revealed by recent data. April saw a significant hike in petrol prices, which went up by R3.06 per litre, while diesel experienced an unprecedented rise of R7.51 per litre. Although the government rolled out a temporary tax relief of R3 per litre to mitigate these effects, May brought further price hikes, with petrol climbing an additional R3.27 per litre and diesel another R6.18 per litre.
In response to these sharp increases, South Africans are adjusting their travel habits. A report from Discovery Insure indicates a 35 percent reduction in fuel purchases in April, alongside a 10 percent decrease in the number of trips taken. Driving distances have also diminished by 9 percent, including during the typically busy Easter holiday period. According to Robert Attwell, CEO of Discovery Insure, individuals are becoming more discerning about when and for what purposes they use their vehicles, driven by the escalating fuel expenses.
Further insights from Discovery Bank highlight a shift in spending priorities, with the majority of fuel consumption now directed towards essential journeys such as commuting, school runs, and shopping. Meanwhile, ride-hailing services are gaining traction, particularly among the 18 to 30 age group, who are increasingly turning to these alternatives.
Looking ahead, diesel users might find some relief as wholesale prices are projected to decrease by up to R2.44 per litre. However, petrol prices are anticipated to rise by an additional R1.69 per litre. As stability in fuel prices is sought, the National Treasury plans to gradually phase out the temporary fuel levy relief implemented earlier this year, starting in June, should prices show signs of stabilisation.