Putco to hike fares by 10% as record-high diesel costs drive fuel bill to breaking point
· Citizen
Putco will increase bus fares by an average of 10% from 1 June as record-high diesel costs, fuelled by global turmoil, drive the company’s fuel bill to breaking point.
Fuel prices in South Africa have surged to unprecedented levels, largely driven by geopolitical tensions that have destabilised international energy markets and hammered local costs.
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Fuel prices
The country has been navigating a punishing fuel market that has hit businesses, motorists, airlines and the taxi industry, despite a two‑month fuel-levy reprieve set to end in June.
On 6 May 2026, diesel spiked to about R32 per litre, a blow, Putco says, that had placed severe strain on its 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,” said spokesperson Lindokuhle Xulu.
“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.”
Fare increase
Xulu said internal projections showed that a fuel‑related adjustment of at least 35% would ordinarily have been required to fully offset the impact of diesel hikes.
“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.”
Seeking relief
He noted that Putco submitted several requests for fuel relief to the Gauteng Department of Roads and Transport ahead of the 1 April increase, supported by the Southern African Bus Operators Association (SABOA), which approached government departments seeking urgent measures to shield commuters and operators.
“Regrettably, these efforts have not resulted in any sustainable intervention to date. The only notable intervention Putco acknowledges is the government’s temporary measures to ease fuel‑related pressures by adjusting 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.
Diesel usage
He painted a grim picture of Putco’s fuel burden: “Putco’s fleet of approximately 1 300 buses consumes close to 3 million litres of diesel monthly. Despite the limited fuel levy relief measures, the company has been absorbing cumulative diesel‑related increases amounting to millions of rand over April and May alone in an effort to shield commuters from immediate fare increases.”
Xulu said the fare adjustment has therefore “become a necessary measure” to ensure the continued provision of reliable transport services across Putco’s operating regions.
Putco said it remains committed to ongoing engagement with government and stakeholders to pursue long‑term interventions that will protect commuters while ensuring the sustainability of subsidised public transport services.
June forecast
Meanwhile, relief may be on the horizon for South African motorists through fuel price recoveries, but any gains will likely be short‑lived as the government’s temporary levy cut expires, threatening to wipe out the benefit at the pumps.
According to mid-month data from the Central Energy Fund (CEF), fuel prices have been relatively stable over the past two months following extreme volatility.
CEF data
The CEF data show that petrol price recoveries have moved to a relatively neutral position on the back of a resilient rand, while oil prices are trading within a narrower range, albeit firmly above $100 a barrel.
Because of this stability, the CEF’s data show recoveries of 19 cents for 93 octane petrol and 13 cents for 95 octane petrol per litre, a far cry from the massive increases recorded in April and May 2026.
Diesel is showing a more positive recovery, with R4.41 per litre for 0.05% (500 ppm) diesel and R3.52 per litre for 0.005% (50 ppm) diesel, compared to the R13-per-litre hike over the past two months.
Recoveries on illuminating paraffin are now R4.37 per litre.