In South Africa, a significant rise in fuel prices during 2026 has led motorists to cut back on driving, as they grapple with the financial strain on household budgets. April saw petrol prices surge by R3.06 per litre, and diesel prices spiked by a record R7.51 per litre. To mitigate these increases, the government implemented a temporary tax relief measure of R3 per litre. Nevertheless, fuel costs continued to escalate in May, with petrol rising by an additional R3.27 per litre and diesel by R6.18 per litre.
According to new data from Discovery Insure, consumers have responded by substantially reducing their travel. The data reveals that fuel purchases decreased by 35 percent in April, alongside a 10 percent reduction in the number of trips taken. Even during the typically busy Easter holiday period, total driving distances dropped by 9 percent. Robert Attwell, CEO of Discovery Insure, indicated that due to the rising fuel costs, motorists are becoming more judicious about when and how frequently they use their vehicles.
Further insights from Discovery Bank show that the majority of fuel spending is now concentrated on essential travel needs such as commuting to work, school transportation, and shopping. Meanwhile, ride-hailing services are gaining popularity, particularly among the younger demographic aged 18 to 30, as they seek alternative means of transportation.
For those reliant on diesel, there might be some respite on the horizon, with wholesale diesel prices potentially dropping by up to R2.44 per litre. However, petrol users may not find the same solace, as petrol prices are projected to increase by around R1.69 per litre.
The National Treasury has plans to gradually phase out the temporary fuel levy relief established earlier in the year. This rollback is anticipated to start in June, contingent upon the stabilization of fuel prices.