South Africans are buying less fuel and driving fewer kilometres as rising fuel costs continue to tighten pressure on household finances, according to new data released by Discovery Insure.
Analysis of telematics and fuel card transactions from more than 200,000 Discovery Insure clients found motorists bought 23% less fuel in May, while fuel transactions declined by 17% compared with January and February levels.
These figures build on an earlier trend identified in April, when litres of fuel purchased dropped by 35% and fuel transactions fell by 28% after the first round of fuel price increases.
Motorists also reduced how much they travelled. Discovery Insure data shows South Africans drove 9% less overall compared with before the recent fuel price hikes, declining by 5.7% in April and a further 3.6% in May.
Robert Attwell, CEO of Discovery Insure, said the behavioural shifts point to growing financial strain rather than ordinary changes in consumer habits.
“These are not normal fluctuations. 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,” said Attwell.
Despite motorists cutting back on travel and fuel purchases, the cost to motorists is higher.
“Simply put, motorists are spending more money and getting less fuel for it,” Attwell said. Total fuel spending is still 15% higher than in January and February.
The findings come after consecutive fuel price increases in April and May placed added pressure on consumers already grappling with rising living costs.
According to Statistics South Africa, fuel prices increased by 18.2% month-on-month in April, the sharpest monthly rise since the current consumer price index fuel series began in 2008. Petrol prices climbed 15.2%, while diesel prices surged by 35.4%, contributing to headline inflation accelerating from 3.1% in March to 4% in April.
The South African Reserve Bank’s Monetary Policy Committee also raised the repo rate by 25 basis points last week, citing inflation concerns.
The data shows diesel vehicle owners have adjusted their behaviour most sharply. Drivers of diesel vehicles reduced their travel distance by 10.9% in May, the biggest decline among vehicle types analysed, compared with an 8.9% reduction among petrol vehicle drivers.
Differences also emerged across age groups and gender.
Female motorists reduced their travel by 9.5%, slightly more than male drivers, who cut back by 8.6%.
Unexpectedly, younger motorists aged between 20 and 30 changed their driving habits the least, reducing travel by 6.8%. Drivers aged 30 to 40 drove 7.6% less, while those aged 40 to 50 reduced their travel by 9.6%. Drivers aged 50 to 60 cut back by 10%.
Attwell said the trend among younger drivers challenges assumptions that lower-income groups would reduce travel most aggressively.
“Conventional thinking would suggest that younger drivers would cut back the most because they generally have lower disposable incomes. Instead, what the data implies is that younger drivers may have fewer alternatives when it comes to getting to work,” he said.
Provincial data also revealed wide regional differences.
The Western Cape saw the largest decline in distance travelled at 15%, followed by the Northern Cape at 14% and the Eastern Cape at 10%.
Limpopo showed the smallest reduction at 2.6%, followed by KwaZulu-Natal at 5.5% and Gauteng at 6.6%.
As households continue adjusting to higher transport costs, Discovery Insure said motorists are increasingly becoming more deliberate about how and when they travel, combining errands, cutting unnecessary trips, planning routes and relying more on delivery services.
Attwell said small behavioural changes and improved driving efficiency could help consumers lessen the impact of sustained fuel price pressure.
TimesLIVE
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