Who rules fuel?

It’s Tuesday evening. You’re busy making dinner, looking at your phone and you see on Twitter that the fuel price is increasing tomorrow. Again. You sigh, tie your gown (you’re not planning to get out of the car) and head to the nearest fuel station to fill your tank, which is already three-quarters full, to save 50c per litre.

You’re not alone… Our data shows that 22seven users flock to fuel stations immediately preceding a fuel price increase. Logically, they’re also not too concerned about filling up in the days before a price decrease.

We last analysed the fuel sector in August 2022, soon after a steady succession of price increases. In June 2023, the inland price of a litre of 95 unleaded was R22.63 – less than the July 2022 high of R26.74 but still vastly more than the 2021 low of R14.86.

Yet people still somehow manage to make space in the budget to fuel their cars. To get a picture of the market, we looked at the sum of all 22seven user spending at South Africa’s most popular service stations. Engen emerged as a clear winner, with 44% of market share.

Why does Engen seem to attract the lion’s share of spend? The answer might not have anything to do with fuel… When it comes to average transaction value at service stations, Engen is roughly on a par with most other franchises but it’s far ahead in average monthly spend. We surmise that this is due to Engen’s relationship with Woolworths – their Foodstop stores are popular convenience shopping destinations across the country.

The Woolies effect is also at play when we look at the number of visits customers make to service stations each month. While most other service stations attract an average of two transactions per user per month, Engen attracts more than three – evidence again of a broader value offering that goes beyond fuel.

No fuel increases have been announced for the immediate future so you don’t have to rush off to the pumps… But next time you do, remember that spending at service stations is just one example of 22seven insights’ ability to analyse almost any aspect of the consumer budget – in real time.