With fuel prices surging in 2026, South African drivers are cutting back on road travel and fuel expenditure, reflecting the strain on household budgets. April saw petrol prices soar by R3.06 per litre and diesel by an unprecedented R7.51 per litre, prompting the government to implement a temporary R3 per litre tax relief. However, the relief was short-lived as May brought further increases of R3.27 per litre for petrol and R6.18 for diesel.
Data from Discovery Insure highlights a significant shift in consumer behavior, with fuel purchases plummeting by 35 percent in April, and the number of trips taken dropping by 10 percent. Additionally, total driving distances decreased by 9 percent, even during the typically busy Easter holiday period. According to Discovery Insure CEO Robert Attwell, the rising fuel costs are compelling motorists to be more judicious about their vehicle use.
Further insights from Discovery Bank reveal that most fuel spending is now centered on essential activities such as commuting, school transport, and shopping. Meanwhile, ride-hailing services are gaining popularity, particularly among younger consumers aged 18 to 30, as an alternative to personal vehicle use.
There is a glimmer of hope for diesel users, as wholesale diesel prices are anticipated to decrease by up to R2.44 per litre. In contrast, petrol prices are projected to rise further by approximately R1.69 per litre. As fuel prices potentially stabilize, the National Treasury plans to gradually phase out the temporary fuel levy relief that was introduced earlier this year, starting in June.