Cape Town Bus Fares Hold Steady Despite Fuel Price Increase

Cape Town bus commuters will avoid an immediate fare increase despite a sharp rise in fuel prices, with diesel increasing by more than R3 a litre from October 7. 

The Department of Mineral and Petroleum Resources says the wholesale price of 0.005% sulphur diesel on the coast has increased from R3.24 to R32.03 a litre, while the 0.05% sulphur grade is up by R2.84 to R31.08. The price of 95 petrol has also increased by R3.33 to R29.38 a litre. 

image: courtesy to pixabay

The department says the main reason for the increases is higher international crude oil prices. Brent crude rose from about US$87.89 to US$101 a barrel during the review period. Ongoing tensions between the US and Iran, uncertainty around oil supplies through the Strait of Hormuz and higher shipping costs also contributed.

Despite the increases, MyCiTi says its fares will remain unchanged for now. The City of Cape Town says its fare system does not respond to a single month's movement in fuel prices. A fare adjustment is only considered when fuel prices reach the next fare level for two out of three months, or for two consecutive months.

Golden Arrow has also ruled out an immediate fare increase. The company says it will continue to absorb rising costs as far as possible to limit the impact on passengers.

However, Golden Arrow has warned that continued increases in fuel costs could lead to a review of peak fares and multi-journey ticket prices in the coming months. Diesel accounts for more than 30% of the company's operating costs, and it uses about 25 million litres of diesel each year.

For now, Golden Arrow says there are no plans to cut routes or reduce off-peak and weekend services. The company says it will continue working to maintain its current level of service while trying to protect passengers from rising costs.

Done by: Nia Damoense