Cutting back? Fuel spending drops by 35% amid shock increases
Spending on fuel has dropped by 35% after the shock increase in April as motorists quickly adjusted while awaiting the increase set for 6 May.
Black News 
South African motorists have cut back on the use of fuel in April following the shock increase in fuel prices that have continued into May.
FUEL SPENDING DROPS BY 35%
As per data from Discovery Insure, based on fuel consumption and driving patterns from over 200 000 consumers, it seems there has been a 35% drop in fuel spending. The data shows that motorists quickly reacted in the hike in fuel prices by reducing unnecessary trips, possibly combining or carpooling and changing the way they drive. Overall spending on fuel dropped by 35% in April compared to March.
Driving behaviour has also changed as trips taken were down by 10% and 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 the government’s effort to soften the impact by temporarily cutting the fuel levy by R3, consumers are tightening their belts by driving less, combining trips, and being more deliberate about when they use their cars,” continued Attwell.
Artwell went on to say that the change followed a sharp increase in fuel purchases, just before the hike.
“This highlights how quickly people react. 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 that while people responded quickly to manage costs, they started to find a balance,” he added.
ANOTHER FUEL PRICE HIKE IN MAY
Now in May, the fuel price has gone up yet again. The Department of Mineral and Petroleum Resources (DMPR) confirmed the price of petrol will increase by R3.27 per litre and diesel will go up by R6.19. This is set to take place on 6 May.
South Africans will now pay R25.80 per litre of 95 unleaded petrol for coastal areas and R26.33 inland. 93 unleaded will now cost R25.73 for coastal and R26.52 for inland. Diesel (0.05%) is now R31.26 coastal and R32.09 inland. Diesel (0.005%) is R31.54 coastal and R32.30 inland.
Take a look at the full breakdown here.
