Commuters face higher transport expenses as bus operator Public Utility Transport Corporation (PUTCO) implements a 10% fare increase starting in June, driven by escalating diesel prices that have strained the company’s operations.
Putco spokesperson Lindokuhle Xulu confirmed the adjustment, noting that while the hike is significant, rising fuel costs have made it unsustainable for the company to maintain services without passing on some of the burden. Xulu highlighted that diesel prices have climbed to R32 per litre over the past two months, representing a major expense for an operator running over 1,300 buses, where fuel constitutes the largest single cost.
According to Xulu, internal projections indicated that a 35% increase would be needed to fully offset the diesel price rises. However, the company opted for a more modest 10% adjustment to remain considerate of passengers while ensuring service continuity for hundreds of thousands of daily users.
Xulu addressed concerns about the potential for fares to decrease if fuel prices ease, stating the company would welcome the opportunity to return to more affordable pricing. The spokesperson emphasized ongoing engagements with national and provincial transport departments seeking interventions to support the industry, particularly in light of geopolitical factors affecting fuel costs. These efforts, however, have not yielded meaningful results.
Requests for fuel relief to the Department of Roads and Transport produced no significant interventions. Xulu noted that a recent cut in the fuel levy offered minimal relief. The company has absorbed more than R40 million in additional fuel costs over the past two months alone, based on consumption of close to 3 million litres of diesel.
As a subsidized bus operator, Putco views itself as part of the public transport solution and has sought to delay the increase as long as possible. Xulu expressed concern for smaller bus companies lacking the financial capacity to absorb such shocks, warning of broader risks to the sustainability of bus services. Industry bodies like Southern African Bus Operators Association (SABOA) have similarly engaged authorities without success.
Xulu acknowledged the pressure on already strained consumers, noting that transport costs are rising alongside other living expenses. The 10% hike does not fully cover the increased costs but represents the minimum needed to sustain operations for now. The company will continue monitoring the situation for any improvements that could allow a review of fares.