Putco holds off on fare increases as diesel price rises
The Automobile Association warns the increases in fuel prices, especially diesel, will have negative consequences for all consumers, as higher input costs will be recovered through higher prices at the tills.
Putco has assured embattled consumers it won’t increase fares after fears about potential increases due to the recent fuel hikes.
Fuel increases came into effect on September 6 after Mineral Resources and Energy Minister, Gwede Mantashe announced the adjustment to prices informed by international and local factors.
Prices for September 2023 were adjusted as follows:
– Petrol (both 93 and 95 Octane): 171.00 c/l increase
– Diesel (0.05% sulphur): 284.00 c/l increase
– Diesel (0.005% sulphur): 276.00 c/l increase
– Illuminating paraffin (wholesale): 278.00 c/l increase
– SMNRP for IP: 370.00 c/l increase
– Maximum retail price of LPGas: 226.00 c/kg increase
Inland areas will now have to cough up the following for:
– 93 petrol: R24.14
– 95 petrol: R24.54
– Diesel 0.05%: R23.05
– Diesel 0.005%: R23.28
Putco spokesperson Lindokuhle Xulu said passengers would not have to pay more for their trips, despite the diesel price increase.
“Putco is aware of the concerns raised by some passengers regarding potential fare increases due to recent fuel hikes. Our contracts with the Gauteng Department of Roads and Transport allow us to apply for and implement fuel-related increases, but as of now, we will not be raising ticket prices,” said Xulu.
“Our passengers will be informed of any fare-related changes through Putco’s official channels, ensuring enough time to adjust.”
The Automobile Association (AA) warned consumers to brace themselves for the massive fuel hikes, the highest to pinch motorists’ pockets since July 2022.
It said the increase in diesel prices was a record high.
“The expected increases are largely being driven by higher international oil prices which have risen on the back of slow demand and decreased output. Reuters News Agency yesterday reported that analysts expect that Saudi Arabia, the world’s biggest oil exporter, would extend its voluntary output cut into October, keeping oil supply tight and prices high.”
The AA says the increases of fuel prices, especially diesel, will have negative consequences for all consumers, as the higher input costs will be recovered through higher prices at the tills.
“Motorists will certainly feel the pinch in terms of higher prices at the pumps. Consumers across the board can expect higher prices to all goods and services because of these hikes.”
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