South Africans bought 35% less fuel in April compared to March.
This as motorists responded to the fuel price increases on April 1 which saw petrol climb by R3,06 per litre and diesel by as much as R7,51/l.
According to telematics and fuel reward card swipes from Discovery Insure’s 200,000 clients, driving behaviour also shifted during the month.
Trips taken were down 10%, and the total distance travelled dropped by 9%.
“The data shows a clear and immediate response to higher petrol prices,” said Robert Attwell, CEO of Discovery Insure. “Even with government’s effort to soften the impact by temporarily cutting the fuel levy by R3/l, consumers are tightening their belts by driving less, combining trips and being more deliberate about when they use their cars.”
Attwell said the change in behaviour followed a sharp spike in activity just before the price increase.
“On March 30 and 31, daily fuel transactions doubled compared to the rest of the month, while total spend on fuel rose by 81% as drivers filled up ahead of the increases. This highlights how quickly people react.
What we are seeing is not only a reduction in driving as petrol prices increase, but an overall change in behaviour. People are becoming more deliberate about how they move, whether that’s driving less, combining trips or using alternatives where it makes sense
— Robert Attwell, Discovery Insure CEO
“There was a strong push to fill up before the increase, driven by uncertainty, followed by a pullback as behaviour adjusted towards the end of the month.
“Fuel spend started to pick up slightly in the third week of April, showing while people responded quickly to manage costs, they started to find a balance.”
The findings come as motorists brace for another increase in fuel prices with effect from May 6. The government has extended the temporary R3/l relief on the fuel levy until June 2.
South Africans are changing how they move
Despite the drop in usage, fuel spend remains largely essential and non-discretionary. That’s according to the “SpendTrend26″ report, which combines data from Visa and Discovery Bank, and found most fuel purchases are driven by daily routines such as commuting to work, school runs and errands, meaning they are driven more by necessity and timing than choice.
The report also showed that while fuel still accounts for most transport costs, alternative options are steadily growing. More than half (58%) of surveyed consumers said they are using ride-hailing services more than they did a year ago, rising to 70% among 18- to 30-year-olds.
Convenience and saving time remain the biggest drivers (54%), followed by social use such as going out (48%), while rising fuel costs also played a role (35%).
“What we are seeing is not only a reduction in driving as petrol prices increase but an overall change in behaviour,” said Attwell. “People are becoming more deliberate about how they move, whether that’s driving less, combining trips or using alternatives where it makes sense.”
TimesLIVE
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