In South Africa, a steep rise in fuel prices during 2026 is prompting motorists to drive less and curtail their fuel expenditures, as households grapple with mounting financial pressure. The price of petrol surged by R3.06 per litre in April, while diesel saw a record increase of R7.51 per litre. In response, the government implemented a temporary tax relief of R3 per litre to mitigate the burden. Despite this measure, fuel prices continued their upward trajectory in May, with petrol rising by an additional R3.27 per litre and diesel by R6.18 per litre.
Data from Discovery Insure indicates a significant shift in consumer behavior, with a notable reduction in travel as a direct response to these price hikes. In April, fuel purchases plummeted by 35 percent, and there was a 10 percent decrease in the number of trips taken. Total driving distances also decreased by 9 percent, even during the typically busy Easter holiday season. According to Robert Attwell, CEO of Discovery Insure, the increased fuel costs are prompting motorists to be more judicious about their vehicle usage.
Further insights from Discovery Bank reveal that most of the current fuel spending is concentrated on essential travel activities, such as commuting to work, school transportation, and shopping. Simultaneously, there is a growing trend towards ride-hailing services, especially among younger individuals aged 18 to 30, who are increasingly opting for these alternatives.
While there may be some respite on the horizon for diesel users, with wholesale prices projected to drop by as much as R2.44 per litre, the outlook for petrol remains less optimistic, with prices expected to climb by an additional R1.69 per litre. The National Treasury is also poised to gradually phase out the temporary fuel levy relief introduced earlier in the year, starting in June, contingent on the stabilization of fuel prices.