Motorists radically reduced their fuel consumption and cut down commuting in April as they felt the impact of surging prices.
South African motorists radically reduced their fuel consumption and cut down commuting in April as they felt the impact of surging prices, new data from Discovery Insure suggests.
The insurer’s analysis was based on telematics – a way of monitoring cars, trucks and equipment using GPS – and fuel reward card swipes from more than 200 000 clients. It showed motorists reduced their fuel consumption by some 35%, and their trips by 10%.
The total distance travelled was reduced by 9% – even when disregarding the Easter long weekend from the data.
Fuel transactions dropped by 28% over the same period.
This is despite a recent finding in the SpendTrend26 report – which combines data from Visa and Discovery Bank – which found that fuel spend is largely non-discretionary, meaning it is essential rather than driven by choice.
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The shift in motorist behaviour was prompted the fuel price increase on 1 April, which saw petrol surge by R3.06 per litre and diesel by as much as R7.51 per litre, indicating that South Africans felt the pinch despite government’s attempt to cushion the blow by means of levy relief.
On Monday, government announced further fuel hikes – R6.19 a litre for diesel and R3.27 a litre for both grades of petrol from 6 May. Illuminating paraffin will increase by R4.22.
Discovery Insure CEO Robert Attwell said the data showed motorists were reacting quickly and becoming “more deliberate”.
“The data shows a clear and immediate response to higher petrol prices,” said Attwell.
“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.”
The change in behaviour followed a sharp spike in activity just before the price increase, Attwell said.
“On 30 and 31 March, 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 increase … 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.”
