Putco announces 10% fare increase from June as diesel prices surge

Commuters using Putco buses will face an average 10% fare increase from June 1 after the company cited mounting diesel costs linked to recent fuel hikes.

Putco said the adjustment was necessary to sustain operations after diesel prices climbed to about R32/l following the latest fuel increase implemented on May 6.

Lindokuhle Xulu, media liaison manager, said ongoing geopolitical tensions had destabilised global energy markets, placing severe pressure on fuel prices locally and increasing operational costs for public transport operators across South Africa.

The company said it had delayed increasing fares despite pressure on its finances in an effort to protect passengers from further financial strain.

“Affordable public transport is not only a social and economic necessity, but also a critical lifeline for thousands of low-income households and working-class communities” said Putco.

According to Xulu, internal projections showed that a fare increase of at least 35% would ordinarily have been needed to fully offset the impact of diesel price hikes. However, the company opted for a lower adjustment to cushion commuters from the full effect of rising fuel costs.

Putco said it had approached the Gauteng department of roads and transport before the first fuel increase on April 1, requesting fuel relief measures. The engagements were supported by the Southern African Bus Operators Association, which also appealed to government departments for intervention.

The company said no sustainable relief measures had yet been introduced, apart from temporary fuel levy adjustments which it described as offering limited assistance to large-scale public transport operators.

Putco operates a fleet of about 1,300 buses and consumes nearly 3-million litres of diesel each month. It said it had absorbed millions of rand in diesel-related increases over April and May to avoid immediate fare hikes for commuters.

The company said it would continue engaging with the government and stakeholders on long-term interventions aimed at protecting commuters while ensuring the sustainability of subsidised public transport services.

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