Amidst escalating fuel prices in 2026, South African motorists are making significant adjustments to their driving habits and fuel expenditures, as they face increasing financial strain on household budgets. April saw petrol prices surge by R3.06 per litre, while diesel prices witnessed a record hike of R7.51 per litre. In response, the government implemented a temporary R3 per litre tax relief measure to mitigate the burden. However, this respite was short-lived as May brought further increases, with petrol prices climbing by an additional R3.27 per litre and diesel by R6.18 per litre.
Data from Discovery Insure reveals a notable shift in consumer behavior, with substantial reductions in travel as a reaction to the soaring fuel costs. In April, fuel purchases plummeted by 35 percent, accompanied by a 10 percent decrease in the number of trips undertaken. Furthermore, the total driving distances diminished by 9 percent, even during the typically busy Easter holiday period. According to Robert Attwell, CEO of Discovery Insure, motorists are now more judicious about when and how often they use their vehicles due to these rising expenses.
Further insights from Discovery Bank highlight that current fuel spending is primarily directed towards essential travel needs like commuting, school transport, and shopping. Concurrently, ride-hailing services are gaining traction, particularly among younger consumers aged 18 to 30, as they seek more cost-effective transportation alternatives.
Diesel users may find some relief on the horizon, with wholesale diesel prices anticipated to decline by as much as R2.44 per litre. Conversely, petrol prices are projected to rise by approximately R1.69 per litre. This fluctuating fuel landscape presents ongoing challenges for consumers striving to manage their travel expenses.
As fuel prices show signs of stabilizing, the National Treasury is contemplating a gradual phase-out of the temporary fuel levy relief introduced earlier in the year. This measure is expected to commence in June, contingent on the continued stabilization of fuel prices, offering a glimpse of potential financial reprieve for South African motorists navigating these turbulent times.