In response to a significant hike in fuel prices during 2026, South African drivers have notably reduced their fuel consumption and travel activities, adjusting to the mounting strain on their household finances. April saw petrol prices surge by R3.06 per litre, with diesel witnessing a historic increase of R7.51 per litre. Although the government introduced a temporary tax relief of R3 per litre to mitigate this impact, the subsequent rise in May meant petrol and diesel prices climbed further by R3.27 and R6.18 per litre, respectively.
Data from Discovery Insure highlights a substantial decrease in consumer travel as a result of these price hikes. April witnessed a 35 percent drop in fuel purchases, alongside a 10 percent reduction in the number of trips and a 9 percent decline in total driving distances, even during the typically busy Easter holiday. Robert Attwell, CEO of Discovery Insure, pointed out that the increasing fuel costs are prompting motorists to become more judicious about their vehicle usage.
Insights from Discovery Bank reveal a shift in fuel spending towards essential travel, including commuting, school transportation, and shopping. In parallel, ride-hailing services have gained traction, particularly among the younger demographic aged 18 to 30, who are increasingly opting for these alternatives amid rising fuel costs.
While diesel users may anticipate some respite with an expected drop in wholesale diesel prices by as much as R2.44 per litre, petrol prices are projected to continue their upward trajectory, increasing by approximately R1.69 per litre. Meanwhile, the National Treasury has plans to gradually phase out the temporary fuel levy relief, contingent on the stabilization of fuel prices, starting in June.