Mobility

1. Whether his Department has assessed the impact of the looming increase in petrol prices; if not, why not; if so, (a) what are the findings of the assessment and (b) how this is expected to affect commuter fares from April 2026;
2. 1. The Department  is cognisant of the sustained upward pressure on fuel prices and the resulting cost implications for public transport operators. While fare determinations vary across modes and operators, it is acknowledged that fuel price volatility presents an ongoing risk to fare stability, particularly over extended periods. The Department’s assessment indicates that, while no immediate widespread fare increases have been implemented from April 2026, operators are increasingly under pressure, with some actively reviewing their fare structures in response to continued cost escalation.

At present, a significant portion of fuel-related cost increases continues to be absorbed across subsidised and contracted public transport services, thereby limiting the immediate impact on commuters. In the case of bus services, fare adjustments are informed by a basket of cost indices and are not driven by fuel price movements alone.

This approach has enabled operators to defer fare increases despite repeated fuel price escalations. However, this position is becoming increasingly difficult to sustain. In this regard, it is noted that Golden Arrow Bus Services (GABS) is actively considering fare adjustments in response to ongoing fuel price pressures, although no increase has yet been implemented.

The assessment indicates the following:

1. 1. 1. GO GEORGE fares are fixed, with next financial year’s tariff increases already before Council for approval. These tariffs are typically increased each municipal financial year, taking into consideration affordability and inflation. Consequently, the increased fuel prices will need to be covered by the Department, which is responsible for the shortfall.
2. 1. 2. Golden Arrow Bus Services (GABS) has not implemented an immediate fare increase. However, it is actively considering fare adjustments in response to sustained fuel price pressures. It should also be highlighted that almost 10% of the GABS fleet is now electric, which helps reduce exposure to fuel price volatility.
3. 1. 3. Dial-a-Ride and MyCiTi services are overseen by the City of Cape Town rather than the Department. However, it is understood that no immediate tariff increases are currently planned by the City.
4. 1. 4. The fares charged for minibus taxi services are determined by the industry. No fare increases have been announced but adjustments may become necessary should fuel price pressures persist.
5. 2. At this stage, no immediate widespread fare increases have been implemented across the major public transport modes serving commuters from April 2026. However, sustained fuel price increases are expected to place increasing strain on operators, which may result in fare adjustments over time if current trends persist.
6. Whether his Department has put measures in place to mitigate the impact of the anticipated fuel price increase of between R4,50 and R5,00 per litre on commuters; if not, why not; if so, (a) what measures have been implemented and (b) which categories of commuters are expected to benefit from these interventions;

The Department has implemented mitigation measures within subsidised and contracted public transport services, including Golden Arrow Bus Services and GO GEORGE, to help shield passengers from immediate fare shocks.

1. 1. At present, a significant portion of fuel-related cost increases continues to be absorbed across subsidised and contracted public transport services, thereby limiting the immediate impact on commuters. In the case of bus services, fare adjustments are informed by a basket of cost indices rather than fuel price movements alone, ensuring that increases remain measured and take affordability into account.

While this approach has enabled operators to defer fare increases, cost pressures are intensifying, with Golden Arrow Bus Services (GABS) actively considering fare adjustments should current trends persist.

The Department also continues to engage operators on improving operational efficiencies to limit upward pressure on fares.

1. 2. These mitigation measures currently provide the greatest protection to passengers using subsidised bus services. At the same time, the Department remains acutely aware of the pressures faced by both commuters and operators in the minibus taxi industry, which carries the majority of public transport users in the province.

In this regard, the Department continues to advance reform initiatives aimed at improving the long-term sustainability of the sector and enabling its progressive inclusion in a more integrated and supported public transport system.

3. Whether his Department has plans to provide financial or operational support to the minibus taxi industry to cushion fare increases; if not, why not; if so, (a) what form will this support take, (b) how many operators are expected to benefit and (c) what is the time frame for implementation;

Minibus taxi fares are determined by the industry, and the Department does not directly regulate fare levels. Unlike rail and bus services, the minibus taxi industry does not currently receive operational subsidies.

The Department has, however, consistently advocated for reform of the sector through initiatives such as the Shayela Smart programme. This programme is aimed at formalisation, improved efficiency, and creating a pathway toward future subsidy mechanisms.

Such reforms are critical to enhancing the resilience of the sector and enabling more structured support in response to cost pressures such as fuel price increases. In addition, the Department has supported the industry, through SANTACO Western Cape, with business-oriented initiatives, including a fuel-saving programme focused on reducing operating costs through bulk purchasing arrangements.

The Department will continue to monitor the impact of fuel price increases and engage the industry on appropriate responses.

4. Whether his Department has engaged with public transport stakeholders, including taxi associations and bus operators, regarding the management of fare increases; if not, why not; if so, (a) what have the outcomes of these engagements been and (b) what agreements, if any, have been reached to protect commuters?

The Department maintains ongoing engagements with Golden Arrow Bus Services (GABS), the GO GEORGE operator and the minibus taxi industry regarding the management of fare increases. The details of these engagements and their outcomes are outlined below:

GABS: The Department regularly convenes management meetings with GABS to engage on matters affecting bus operations, including fare-related pressures. GABS has indicated that, while it has sought to shield passengers from immediate fare increases, it is actively considering fare adjustments in response to sustained fuel price pressures, should current conditions persist.

GO GEORGE: The Department develops the annual tariff adjustments for GO GEORGE, in collaboration with the Municipality of George. GO GEORGE fares are fixed until July 2026, and the proposed increases from July 2026 – July 2027 have already been developed and submitted to Council for approval. Any in-year increases in fuel price are absorbed by the Department.

Minibus taxi industry: The Department engages with the industry on operational matters, including fare-related pressures, through the MBT Task Team and other forums. However, as noted above, fares in this sector are determined by the industry and the Department is not directly involved in fare setting.

At present, fares across major public transport modes have largely remained stable despite fuel price increases. However, continued cost pressures may necessitate adjustments over time should current trends persist.