On the back of yet another steep fuel price increase at the start of May, South African motorists opted to decrease their number of trips last month, refuelling less and saving money that would have been spent on fuel.
This is according to Discovery Insure, whose data suggests that motorists are feeling the impact of the current sky-high prices.
Telematics and fuel card transactions from over 200,000 Discovery Insure clients show that motorists bought 23% less fuel in May.
At the same time, fuel transactions dropped by 17% when compared to January and February.
This trend was the same in April, when 35% fewer litres of fuel were purchased, while fuel transactions also declined by 28% following the initial fuel price increase.
Since the fuel price increases took effect, South Africans have also driven 9% less – 5.7% less in April and a further 3.6% less in May – as motorists cut back as much as practically possible.
Discovery Insure CEO, Robert Attwell, explained that these are not normal fluctuations, but rather a response to consecutive fuel price increases in April and May, which have put pressure on household budgets.
“When compared to the past few years, we rarely see fluctuations of more than 1% in fuel demand and driving behaviour. What we are seeing now reflects the real financial pressure people are under,” he said.
“Despite driving less and buying less fuel, overall spending is 15% higher compared to January and February. Simply put, motorists are spending more money and getting less fuel for it.”
Statistics South Africa (StatsSA) reported that fuel prices rose by 18.2% month-on-month in April, which was the steepest monthly increase since the current CPI fuel index series began in 2008.
This contributed to headline inflation accelerating from 3.1% in March to 4% in April, and led to the South African Reserve Bank’s (SARB’s) Monetary Policy Committee increasing the repo rate by 25 basis points last week.
Some factors that drove fuel price increases have started to ease, yet uncertainty remains around the fuel price outlook, including the government’s temporary fuel levy relief measures.
The most drastic behaviour changes
Unsurprisingly, diesel drivers cut back the most, driving 10.9% less in May and recording the steepest decline across all vehicle types analysed by Discovery.
Compared to this, petrol vehicle drivers collectively reduced their driving distance by 8.9%, while female drivers reduced their trips by more than male drivers, travelling 9.5% less compared to 8.6% less.
Discovery’s data also noted that younger drivers, aged between 20 and 30, showed the least change in driving habits, reducing their driving by 6.8%. In comparison:
- Drivers aged 50 to 60 drove 10% less
- Drivers aged 30 to 40 drove 7.6% less
- Drivers aged 40 to 50 drove 9.6% less
“Conventional thinking would suggest that younger drivers would cut back the most because they generally have lower disposable incomes,” noted Attwell.
Instead, what the data implies is that younger drivers may have fewer alternatives when it comes to getting to work, making it harder to reduce travel even when fuel becomes more expensive.”
Overall, drivers in the Western Cape reduced their trips the most, driving 15% less, followed by the Northern Cape with a 14% reduction, and the Eastern Cape recording a 10% decline.
Drivers in Limpopo recorded the smallest reduction in trips, with 2.6%, followed by KwaZulu-Natal at 5.5% and Gauteng at 6.6%.
Attwell added that, because consumers cannot control the fuel price, there are ways to reduce the impact of high fuel prices.
“Many people are already becoming more deliberate about how and when they travel, whether by combining errands, reducing unnecessary trips, planning routes, or making use of delivery services,” he said.
“This is also a good time for motorists to really make the most of fuel rewards programmes and to focus on driving habits that improve fuel efficiency.
Attwell concluded that small changes can make a meaningful difference over time, especially as fuel price pressures continue.
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