Bus company Putco, has resolved to temporarily suspend its fuel-related fare increases that were expected to come into effect from August. The increase announcement lead to

The move follows Putco’s announcement in July, that it had no option but to increase fares after its June diesel expenses skyrocketed by close to 50% of its total operational costs.

Putco provides public transportation throughout Gauteng, Mpumalanga and Limpopo.

Business development executive Matlakala Motloung says commuters were unhappy about the increase, leading to protests outside bus depots in Gauteng recently.

“Commuters have expressed their unhappiness about the impending increase, as such Putco has decided to reach out to government one more time.”

Motloung says Putco would give commuters feedback before August 15 and provide clarity regarding reimbursing passengers who had already bought tickets at a higher amount.

She says Putco was hit hard by the increases in fuel prices, which were affecting public transport operations.

“Diesel accounts for 30% of operating costs; however, in June it skyrocketed close to 50%.”

She says the diesel price has increased substantially from R14.71 in June 2021 to R25.53 in June 2022.

The fuel increases led to the bus operator increasing fare prices with R2 for short trips and R7 for long trips, from August 1.

She says the company noted the impact that the increases would have on commuters.

“Putco has been severely affected, absorbing the fuel price increases for many months and it has now become unaffordable.”

She says the government subsidy for public transport had also remained below inflation.

“The bus subsidy allocation decreased from April as fuel prices were skyrocketing.”

Motloung says government has offered up R1.50 per litre from the general fuel levy as temporary relief to motorists.

She says the relief however did very little to alleviate the burden on public transport operators.

She added that Putco was also in the process of replacing older buses with more fuel-efficient ones to soften the fuel blow further.

The bus industry through the Southern African Bus Operators Association (SABOA) recently urged the government to find long-term solutions to alleviate the high fuel cost burden on public transport operators, says Motloung.

She says the bus industry is still awaiting a workable solution.