Most of those who survived the pre-dawn crash have serious injuries, said a police spokesman in the city of Ayacucho, located 320 kilometers (200 miles) southeast of the capital Lima.
More than 50 passengers were aboard the bus, which was heading from Lima to Ayacucho.
"Some of the bodies were mutilated by the powerful impact," police said, adding that rescuers were trying to retrieve bodies trapped amid the mangled steel.
Peru`s roads are among the most dangerous in Latin America: 3,400 people a year were killed on average over the past six years in traffic accidents in Peru. Last year there was a slight improvement -- 2,852 people were killed in Peruvian traffic accidents.
The high death toll is blamed on perilous mountain roads, bad road conditions, poor vehicle maintenance and untrained drivers. (*)
Editor: Kunto Wibisono
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