In the wake of a projected $60,000-jump in fuel costs, Whitehorse Transit riders may have to prepare themselves for a fare hike.

Dave Muir, the city's transit, manager, said Wednesday his department will present a variety of options to council which will help the city's bus service, including a boost in fares.

'What we're seeing are increases beyond our control,' he said in an interview.

'There's certainly economic impacts on running the transit system. Things like wages, fuel and insurance have an impact.

'If we're going to be maintaining a 25-per-cent cost recovery level, we're either going to have to increase revenues or decrease costs.

'The only way to decrease costs is to cut service, and I personally don't advocate for that. Increasing fares is our only source of revenues.'

Earlier in the outgoing council's term, bus service was reduced on some routes. Country residential routes were eliminated altogether in the face of poor ridership in those areas.

Options for maintaining the transit system's current level of cost recovery, the money the system makes in fares compared to what's spent on operating the system, will soon be presented to the council that will be sworn in Monday.

Ray Goruick, the city's finance manager, said Wednesday fuel prices between 2004 and this year have risen substantially. Prices in 2007 are projected to climb even higher.

According to city figures on transit fuel:

• In 2004, fuel costs were $161,000;

• In 2005, Goruick said, the costs of buying fuel for city buses was $184,000.

• In 2006, he said, those costs had gone up to $209,000.

• Projections for 2007, he added, are $220,000.

New buses purchased by the city under a federal funding program, he added, will reduce the impact of fuel prices.

'We think the new buses are supposed to be more fuel-efficient (so) we're expecting them to stem some of the costs of fuel,' he said.

Any increase in service, Goruick added, would add to the cost of fuel.

Muir said if the system was brought back to 2003 levels, when it experienced service cuts of 35 per cent, costs would 'skyrocket.

'It would be huge. We'd likely have to double the fares and monthly passes would be about $100.

'An individual ride would be $4 or $5.'

Current fares for a single ride are $2 for adults, youths, students and seniors, according to Whitehorse Transit.

Monthly passes are $50 for adults, $32 for youths and $21 for seniors.

A student's term pass costs $180.

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