Fuel purchases among Discovery Insure clients fell 33% in volume in October after fuel price increases pushed inland 95 unleaded petrol above R30/l for the first time.

A recent spate of price hikes has seen monthly fuel expenditure rise sharply from an average of R1 750 at the beginning of last year, to between R2 500 and R2 700 by the middle of this year.

An analysis of fuel transactions and telematics data from more than 200 000 Discovery Insure clients also reveals that smaller fuel purchases, more often, are becoming increasingly common.

The average amount purchased per transaction has fallen from about 36 l to 31 l during months with larger fuel price increases.

Purchases of less than 20 l are also increasing, accounting for around 36% of transactions this year, up from 25% last year.

Everyday driving has remained largely stable, however, notes Discovery Insure, with only temporary declines in trips and kilometres travelled.

In April, trips fell by 10% and kilometres travelled by 9%.

Even after excluding the Easter weekend, trips and distances travelled were still down 8%.

By May, motorists were travelling 9% less than before the increases.

These reductions proved difficult to sustain, however, as driving returned to normal levels shortly afterwards.

From June to September this year, trips and kilometres travelled were slightly higher than the same period last year.

Following the October fuel price increase, trips fell again by 6%, while kilometres travelled declined by 7%.

What motorists have cut back on is discretionary travel, says Discovery Insure.

The company recorded a 30% decline in long-distance trips during the winter months, while everyday commuting remained relatively the same.

These findings also align with those from SpendTrend26,a joint report by Discovery Bank and Visa, which identified fuel as an essential expense linked to daily routines, such as commuting to work, school runs and errands.

“There’s a difference between buying less fuel and needing less fuel,” says Discovery Insure CEO Robert Attwell.

“Motorists can cut back on some discretionary trips, but getting to school and going about their daily lives isn’t optional. For many households, transport isn’t an expense they can simply cut.”

According to Statistics South Africa, transport costs have risen by 10.8% year-on-year, more than double the overall inflation rate of 4.5%.

Fuel prices have added to this pressure. For example, inland 95 unleaded petrol rose from R20.75/l in January to R30.25/l in October – a 46% increase.

For a motorist filling a 50-litre tank, that was an additional R475 per full tank compared with January.

For households, the financial pressure does not end at the fuel station. It follows them home, leaving less money for other essential expenses, such as food and electricity, says ESG Analytics MD Sfiso Skenjana.

Lower and middle-income households are particularly exposed, spending between 15% and 22% of their income on transport.

“Fuel prices don’t just affect what it costs to drive. Diesel is used to move goods and run businesses, so when diesel prices rise, the cost of everyday essentials rises too,” says Skenjana.