With the Automobile Association predicting record high fuel costs, commuters can expect travelling price hikes. Golden Arrow Bus Service (GABS) has confirmed that in light of the 30 per cent fuel increase over the past year and the six per cent expected increase next month, the bus service will be unable to carry the cost. FNB Economist Dawie Maree expects the petrol price to rise by up to 85 cents a litre, diesel by 87 cents and illuminating paraffin by 82 cents.
Golden Arrow spokesperson Bronwen Dyke-Beyer said the service provider will be adjusting fares in the coming months.
In a statement released on Friday, GABS General Manager Derick Meyer said GABS will continue to address the rising fuel costs through effective cash management, cost controls and a process of quality management.
“Regrettably the company is no longer in a position to absorb these cost escalations and in line with the special conditions of its interim contract with the Western Cape Provincial Department of Transport will, therefore, be adjusting fares in the coming months.
“However, the extent to which these cost increases can be effectively absorbed has proved insufficient and a significant under recovery will still be prevalent even after the proposed increase is implemented. This fare adjustment is therefore an unfortunate but unavoidable last resort.”
GABS has not confirmed when the fares will come into effect.
“Golden Arrow will release more information with regards to when the fares adjustment will come into effect shortly so that passengers are fully aware of how they will be affected,” the statement read.