(Photo: Freepik)
South Africans have drastically adjusted their spending on fuel and driving habits in response to the recent huge increases in fuel prices.
New data from Discovery Insure shows that fuel purchases fell by 35% in April compared to March.
This analysis, which is based on telematics data and the fuel rewards cards of more than 200,000 customers, paints a clear picture of how motorists felt the fuel increase on 1 April in their pockets.
In April, the price of petrol rose by R3.06 per litre, while diesel consumers had to pay as much as R7.51 per litre.
The impact of this was immediately visible in the data which shows that spending on fuel has decreased by 28% over the same period.
Fewer trips and shorter distances
In addition to the drop in purchases, South Africans also drove less often and took shorter journeys. The number of journeys undertaken fell by 10%, while the total distance traveled decreased by 9%. Even when the effects of the Easter weekend (when many people travel) are omitted from the figures, the decrease in journeys and distances remains at around 8%.
Robert Attwell, chief executive of Discovery Insure, says the data reflects the consumer’s immediate response to the economic pressures.
“Even with the government’s attempt to mitigate the impact by temporarily cutting the fuel levy by R3, consumers are tightening their belts by driving less, planning their journeys and being more deliberate about when they use their cars.”
Crash before takeoff
Just before the new prices came into effect, motorists flocked to gas stations to fill up their tanks.
Just before the new prices came into effect, motorists flocked to gas stations to fill up their tanks. (Photo: Suné van Heerden/Maroela Media)
“On March 30 and 31, daily fuel transactions doubled compared to the rest of the month, while total spending on fuel rose by 81% as drivers filled up ahead of the increase. This highlights how quickly people are responding.
“Fuel spending started to pick up slightly again in the third week of April, which shows that although people reacted quickly to manage costs, they started to find a balance again,” says Attwell.
Despite the decrease in consumption, fuel for most South Africans remains a necessary expense that cannot simply be cut from the budget. According to the SpendTrend26 report, a joint project by Visa and Discovery Bank, most fuel purchases are driven by daily routines such as driving to work, school trips and essential tasks.
This means that these purchases are driven by necessity and timing rather than free choice.
The report also indicates that alternative options are systematically gaining ground. More than half (58%) of consumers who took part in the survey say that they use carpooling services more than a year ago. In the age group 18 to 30 this figure rises to 70%.
Convenience and saving time remain the biggest drivers for this shift for 54% of people, followed by social use such as going out (48%), while rising fuel costs played a decisive role for 35% of consumers.
New way of moving
It seems that the high fuel price is forcing South Africans to be more flexible and resourceful with their transport plans. The days of aimlessly driving around or unplanned trips seem to be a thing of the past as economic reality sinks in.
Attwell stresses that these changes may be permanent as motorists adapt their lifestyles.
“What we’re seeing is not just a decrease in driving as petrol prices rise, but an overall change in behaviour. People are becoming more deliberate about how they move, whether it’s by driving less, combining journeys or using alternatives where it makes sense.”
Also read: Fuel | Diesel more as R6 more expensive
While South Africans steel themselves for the next price increase that will come into effect on Wednesday, there is at least a little bit of room to breathe. The government has announced that the temporary relief of R3 per liter on the fuel levy will be extended until 2 June.