Business Report

Putco announces 10% fare hike as fuel costs squeeze operations

Simon Majadibodu|Published
South Africa’s largest public bus operator, Putco, says it will implement a 10% fuel-related fare increase from June 1.

South Africa’s largest public bus operator, Putco, says it will implement a 10% fuel-related fare increase from June 1.

Image: Supplied

South Africa’s largest public bus operator, Putco, has announced that it will implement an average 10% fuel-related fare increase from June 1, 2026, following recent fuel hikes that continue to place severe pressure on its operations and long-term sustainability.

The bus operator made the announcement on Wednesday.

The company said the continued rise in fuel prices has largely been driven by ongoing geopolitical tensions that have destabilised international energy markets and ultimately affected local fuel costs.

Fuel prices in South Africa have surged to unprecedented levels and have badly affected businesses, motorists and the taxi industry, among others.

On May 1, 2026, diesel spiked to about R32 per litre.

However, Putco said this had placed severe pressure on the company’s operational sustainability.

“While many operators across the transport sector responded with immediate fare increases, Putco deliberately delayed implementing any adjustment in an effort to protect passengers from additional financial strain.”

“The company remains mindful that 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 that South Africa’s public transport policy framework seeks to cater for,” Putco spokesperson Lindokuhle Xulu said.

He said that, under the current circumstances, internal projections revealed that a fuel-related adjustment of at least 35% would ordinarily have been required to fully offset the impact of diesel price increases on operations.

“However, in line with its continued commitment to affordable public transport, Putco has once again taken the decision to implement a significantly lower adjustment in order to cushion passengers from the full financial impact of the escalating fuel costs.”

According to Xulu, ahead of the first fuel increase on April 1, 2026, Putco submitted several requests for fuel relief to the Gauteng Department of Roads and Transport.

“These engagements were further supported through the Southern African Bus Operators Association, which approached relevant government departments seeking urgent measures to shield commuters and public transport operators from the impact of the increases.”

However, he said the efforts had not resulted in any sustainable intervention to date.

“The only notable intervention Putco is able to acknowledge is (the) government’s temporary measures to ease fuel-related pressures through adjustments to the fuel levy.”

“However, while these interventions have provided limited relief for individual motorists, their impact on large-scale public transport operations remains minimal when measured against the scale of current diesel increases,” Xulu said.

He said Putco’s fleet of about 1,300 buses consumes close to 3 million litres of diesel a month.

“Despite the limited fuel levy relief measures, the company has been absorbing cumulative diesel-related increases amounting to millions of rands over April and May alone in an effort to shield commuters from immediate fare increases.”

He said the implementation of the fuel-related fare adjustment had therefore become a necessary measure to ensure the continued provision of reliable transport services across Putco’s operating regions.

“Putco remains committed to continued engagements with government and relevant stakeholders in pursuit of long-term interventions that will protect commuters while ensuring the sustainability of subsidised public transport services,” he added.

IOL previously reported that diesel is expected to see a much-needed price drop next month.

According to the latest data from the Central Energy Fund, petrol prices are expected to increase, although by a smaller margin.

Reports indicate that the fuel price has recovered after volatility over the past two months.

According to the CEF’s fuel price predictions, petrol 93 and petrol 95 are expected to increase by 13c and 19c, respectively, while diesel 0.05ppm and diesel 0.005ppm are expected to decrease by R4.41 and R3.52, respectively.

[email protected]

IOL News

Get your news on the go. Download the latest IOL App for Android and IOS now.