The rising transport costs rippling through both public bus and taxi systems, and the impact is felt not only by commuters but also by entrepreneurs.
Bus operator Putco has announced a 10% fare increase from June, citing soaring diesel prices and operational pressures. The company says diesel now costs about R32 per litre, following recent fuel hikes linked to global geopolitical tensions and energy market volatility.
Putco says “the increase was delayed for as long as possible to shield low-income commuters from rising living costs”.
The operator runs a fleet of about 1,300 buses consuming nearly 3 million litres of diesel monthly.
National Treasury and the Department of Petroleum and Mineral Resources temporarily reduced the general fuel levy by R3 per litre between 1 April and 5 May, lowering the petrol levy from R4.10 to R1.10 per litre. The diesel levy was also reduced from 6 May, with the relief extended to 2 June.
Taxi industry also adjusting fares
The minibus taxi industry is also under pressure from rising fuel costs, with operators adjusting fares to remain financially viable.
South African National Taxi Council (SANTACO) national spokesperson Rebecca Phala said taxi fares in the long-distance segment are expected to increase by between R10 and R30, while short-distance trips could rise by R2 to R6.
She warned that further increases remain possible by the end of May if fuel prices continue to climb.
Cape Organisation for the Democratic Taxi Association (CODETA) spokesperson Makhosandile Tumana says operators were forced to increase fares earlier than usual due to fuel pressures.
“We normally increase our prices in December, but this year we decided to increase them now because of the fuel price increase. We took this decision with heavy hearts, but we have no choice,” Tumana said.
Many of public transport users who rely on both buses and minibus taxis include not only commuters travelling to formal jobs, but also entrepreneurs, informal traders, and small business employees who depend on public transport to reach suppliers, collect stock, and serve customers.
SMEs caught in the cost squeeze
For small businesses , the combined pressure from bus and taxi fare increases is expected to filter through the economy in two key ways.
Higher transport costs raise business operating expenses. SMEs that rely on daily deliveries, stock replenishment, or commuting staff are likely to face increased logistics and labour-related costs.
A small manufacturing business, Sibusiso Precision Manufacturing in Pretoria says the pressure is becoming visible in day-to-day operations.
“My workers rely on taxis and buses every day, and already some of them are struggling. We are starting to see requests for help with transport costs,and small delays affect production because we run with a small team,” Sibusiso Banda said.
The impact is not limited to employees. Many entrepreneurs rely on public transport, especially in township and peri-urban economies where private transport is not always affordable.
A bakery entrepreneur in Soshanguve, Relebohile Mohale who travels daily by bus to buy stock, says fare increases are affecting profit.
“Every time transport goes up, I have to adjust what I buy or increase prices, but customers are also struggling. It’s a constant balancing act just to stay open,” she said.
