Public transport passengers in Cape Town will avoid an immediate fare increase, despite the rise in diesel fuel prices by more than 3 rand per liter. Nevertheless, Golden Arrow warned that further increases in fuel costs could force it to review fares in the coming months.
MyCiTi also excluded an immediate increase, stating that its fares are not adjusted in response to fuel price changes after only one month.
The Department of Mineral Resources and Energy (DMRE) announced on Monday that the fuel price increase will take effect on October 7. The retail estimated price of diesel fuel with 0.005% sulfur content on the coast will rise by 3.24 rand per liter, reaching 32.03 rand. Fuel with 0.05% sulfur content will increase by 2.84 rand to 31.08 rand per liter. Drivers will also feel this, as the price of 95 octane petrol will rise by 3.33 rand per liter, amounting to 29.38 rand.
International oil prices drive fuel cost increase
DMRE explained that the main factor behind this increase was the rise in global crude oil prices. The average price of Brent crude increased from 87.89 US dollars to 101 US dollars per barrel during the reporting period. The Ministry linked this increase to ongoing tensions between the US and Iran, uncertainty regarding oil flows through the Strait of Hormuz, increased transportation costs, and lower reserves.
Rand barely managed to cushion the blow, as it changed from 16.213 to 16.212 against the US dollar.
MyCiTi fares will not change yet
Cape Town has announced that MyCiTi passengers will currently be exempt from another fare increase. Rob Quintas, a city council member for urban mobility, told IOL: 'The fuel price increase taking effect at midnight will not affect MyCiTi bus fares.'
Quintas emphasized that the City is trying to protect passengers from shocks caused by fuel prices. He clarified that the MyCiTi fare adjustment mechanism does not react to fuel price fluctuations within one month. He added that an increase only occurs if the fuel price reaches the next fare level within two out of three months or within two consecutive months. When the adjustment mechanism is triggered, new fares are introduced on the first Saturday of the following month.
Golden Arrow refrains from further fare increases
A Golden Arrow representative, Bronwen Dyke-Beyer, reported that the company has no immediate plans to increase fares for single trips, weekly, or monthly tickets. According to the company, diesel fuel accounts for over 30% of Golden Arrow's operating costs, which consumes about 25 million liters annually.
Nevertheless, Golden Arrow warned that the continuous rise in fuel costs could lead to fare reviews in the coming months. Dyke-Beyer noted that the company has done everything possible to absorb rising costs and minimize the impact on passengers, acknowledging the significant financial pressure on households.
She added that due to the ongoing rise in fuel prices, the need to review peak hour and multi-trip ticket fares cannot be ruled out in the near future. Any such decision will consider service sustainability as well as the impact on passengers. Dyke-Beyer also assured that Golden Arrow always strives to notify passengers of any fare increase at least one week in advance, where circumstances allow.
The company also stated that it currently does not plan to reduce routes or services during off-peak hours and on weekends. Golden Arrow's priority remains maintaining the current level of service and maximizing passenger protection from the consequences of rising operating costs. She pointed out the availability of discount products as a relief for passengers who may be particularly sensitive to travel expenses. Furthermore, Dyke-Beyer mentioned that subsidized fares are offered for students and pensioners, providing additional support to those particularly sensitive to increased travel costs.