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13:11 GMT, Wednesday, 29 October 2008

Bus boss defends second fare rise

Bio-ethanol bus

A bus company in Berkshire has defended its decision to introduce a second rise in fares in five months.

Reading Buses says it is introducing an average 6% fare rise from 3 November to cover an increase in fuel, staffing and insurance costs.

The annual rise comes after an interim increase in fares in July.

Reading Buses said despite lower fuel prices for motorists, it pre-orders supplies, and its 2009 stock was bought in July when prices were high.

Chief executive James Freeman said: "By taking decisive action now we hope we can stave off a further fares rise for another 12 months.

"The cost to us can continue to rise whilst at the same time the price at the pumps for motorists is dropping"
James Freeman, Reading Buses

"The November change is our annual revision to deal with the increased costs of staffing, insurance and materials as well as the ongoing effects of much higher fuel costs than a year ago.

"Although some of these cost increases can be mitigated by making savings, a fares revision is unavoidable."

He pointed out that the company's fuel bill will go up from £3.5m last year to an estimated £5m in the next 12 months as supplies are often bought up to 18 months in advance.

"The cost to us can continue to rise whilst at the same time the price at the pumps for motorists is dropping," Mr Freeman added.

The move comes despite the company recently introducing a fleet of 13 bio-ethanol double-decker buses, which run on fuel made from sugar beet waste.

The adult Busabout fare for unlimited travel will rise from £3 to £3.20 but the child equivalent is being cut by 10p to £1.90.

An adult single fare will go up from £1.60 to £1.70 and a child single fare will rise 20p to £1.90.

The cost of rural services will go up by 10p and price rises will also affect Travelcard users.



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Related to this story:
Bus fares to rise over fuel cost (06 Jul 08 |  Berkshire )
Special pump for sugar beet buses (16 Jun 08 |  Berkshire )
Passengers to get cashless buses (15 Jan 04 |  Berkshire )
Bus fare to rise over fuel prices (26 Jun 08 |  Staffordshire )

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