- Rising fuel prices and the cost-of-living crisis are reshaping South African consumer behaviour, pushing buyers to prioritise affordability and value for money over brand loyalty and status.
- Fuel efficiency is the second-highest priority for new car buyers after purchase price, with 52.5% of respondents in a Cars.co.za survey ranking it above considerations such as brand loyalty and resale value.
- The 2026 South African Customer Experience Report found that 72% of surveyed consumers felt their financial circumstances had worsened compared with the previous year.
- Consumers are increasingly using AI search tools, online reviews and customer recommendations to research products and compare options before engaging directly with brands.
- South African brands and businesses have an opportunity to build customer trust by offering transparent pricing, demonstrable value and practical assistance. While 50% of consumers surveyed want help finding better value and deals, only 7% of businesses say the same.
After the shock of last week’s fuel price increases to close to R30 p/l for diesel and almost 27 p/l for petrol, commuters across the nation are feeling the sharp pinch of prices at the pumps.
So high has the fuel price risen – from R20 p/l to R30/l in just over four years – the impact of these spikes is trickling down fast into several aspects of our lives. Add to this the latest Repo Rate increase by another hard-to-swallow 25 basis points – and with the possibility of another one coming next month – consumers, SMEs and businesses are being squeezed at every turn.
This is quickly shifting buying behaviours, whether it is for consumer or business needs, as every time the oil price shifts so too does what we pay for and what we can afford. So says Charlie Stewart, Rogerwilco CEO. Together with Julia Ahlfeldt from Julia Ahlfeldt CX Consulting and ovatoyou’s Amanda Reekie, Stewart recently released the eighth consecutive annual South African Customer Experience Report and its insights paint a challenging picture.
To put this into perspective, consider the car market. Fuel efficiency has emerged as the second-highest need for new buyers after the purchase price thanks to the rapidly rising fuel price.
Petrol and diesel fuel how we shop for new cars
According to Cars.co.za’s industry report for 2026, 52,5% of its recent survey said fuel efficiency outranked traditional considerations like brand loyalty or resale value.
“The purchase of cars, be they new or second-hand, provides a clear index on what is happening in the economy. There has been a plethora of new brands entering the market, especially among hybrid vehicles, smaller-engine vehicles and affordable new energy alternatives as consumers move towards more fuel-efficient cars because of the ongoing US-Iran war which directly impacts the oil price.
“In searching for these new styles of vehicles consumers are using search inquiries for petrol-electric hybrids as a steady quarter-on-quarter growth shows. Buyers need to reduce their fuel-to-kilometre running costs urgently,” says Stewart.
Value trumps loyalty and brand status
This is echoed in the 2026 South African Customer Experience Report, he says. “The value of brand still matters but it increasingly has to earn its premium by proving value. While once the type of car you drove either provided functionality, brand preference or status, today the cost to run its engine matters more. The economic reality we find ourselves in has changed how consumers shop; they want value, and they want proof long before they make a purchase anywhere.”
AI Search drives the momentum in changing purchasing patterns
Staying with cars, if one looks at the car insurance market, consumers are now looking at every option available, tending to turn to new tools like the LLMs (Large Language Models like ChatGPT) and AI-Search and less so to traditional Google Search. And they’re able to see plenty of unbiased, third party published information about different purchasing options without ever engaging with that brand before.
“Through the rapid rise in AI-based search, consumers have the power in their palms to research, review and discover the range of options of products available to them, without ever having to visit a website first,” says Stewart. “They are turning to other customers’ online reviews and recommendations, which have become extremely powerful forms of marketing as well as information picked up by the AI algorithms.”
Wins not wastes
With an eye-opening 72% of consumers who reported in this year’s Customer Experience Report saying that their financial circumstances are worse off than a year ago, coupled with the radically improving technology available via their smartphones and online, today’s consumer has a bounty of choices and is not being dictated to by brand messaging but by good value for money and trust that their purchase will be a win not a waste of time.
“Consumers are indeed doing the maths – long before they reach the physical or virtual till point. Cars sales are one steady example that provide a solid reading on the state of the economy. As the fuel price hovers around R30 p/l, running a vehicle on a monthly basis is becoming extremely tough. Let’s also consider the cost of commuting: trains, taxis and services like Uber are all feeling the pinch. Anecdotally, I took an Uber recently. The driver told me while Uber’s prices have increased, driver wages have not. This sinks home the point that in this deepening cost-of-living crisis, the consumer is far worse off than they were a year ago.
“Our research supports this: 56% of those surveyed are buying house or no-name brands, 40% actively compare prices, 39% use search for deals and promotions, 36% use search engines to find the best value while alarmingly 21% dip into their savings and pension funds to cover their increasingly higher monthly living costs,” comments Sewart.
Consumers are in the driving seat
It’s indeed a new Era where what worked before for brands and businesses no longer does. Driven by the realities of the economy coupled with AI Search access, consumers are in the driving seat and making discerned decisions about what and where to spend their hard-earned Rands.
“Life has changed, no doubt. We have entered a new Epoch. That being said, given consumers have the ability to discover what they want before they engage with a brand is a powerful benefit as they are not held ransom by one particular product over another.
“Just like buying a new car, purchasing decisions are being made carefully, intently and with value at the fore-front of consumers’ minds. Brands and businesses must understand this and, while they cannot control the oil or fuel price, and resultant price increases because of that, they can play a more active role in how they show up for consumers and customers and provide help to find the best value and deal. While 50% of consumers report that they want help with this, a meagre 7% of businesses say the same. That is a concern; those brands that come to the consumers’ plight – either through help, trust, value, price and service – will be the ones that will win in this new Value Economy.”
