For the first time since 2014, South Africans are spending more on fuel than on buying new vehicles, the latest motor trade sales from Statistics South Africa show.
An estimated 27.94% of total 2018 vehicle spending goes to fuel, followed by new vehicle spend at 26.41% and used vehicle spend at 18.64%, South African Market Insights said.
For the past four years, spending on new vehicles had been a bigger part of total car spending than fuel.
In absolute numbers, for 2018 to date, South Africans spent on average R14.76 billion per month on fuel, and just over R14 billion on new vehicles.
“This is however not an uncommon occurrence in South Africa, during the financial crises fuel prices skyrocketed and new car sales plummeted as people cut back on their spending,” the finance analysis site said.
South African Market Insights also believes the gap between the two will widen, with fuel spend far outperforming new vehicle spend as fuel prices increase.
The South African government is currently working on measures to decrease the economic impact of a devastating fuel price increase in July - pushing the price per litre petrol past R16 inland for the first time.
At the time, President Cyril Ramaphosa said he is in talks with Ghanaian president, Nana Akufo-Addo, for a possible trade deal with the oil-producing country to decrease prices.
The Democratic Alliance (DA), the country’s official opposition, called on Ramaphosa to reduce the R3,37 tax on a litre fuel by 20%.
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