MTC bracing for higher gas prices

So far the Montreal Transit Corporation has been spared the sticker shock of recent gas price increases, with pre-increase fuel contracts.

"We generally have a cushion of protection."

But MTC vice-chairman Marvin Rotrand says they're bracing themselves for higher gas prices that'll hit them right in the wallet - at a time when they're trying to increase ridership and keep fares from climbing to help pay for extra fuel costs.

"If it goes up to two dollars a litre, that's going to have a major impact on us as well. If we have to bear an extra 10 or 12 million dollars in fuel charges, we have some difficult choices to make."

Like raising fares or cutting service, both unpopular options, especially since a 17% increase in metro service since January has meant a three per cent increase in ridership.

"There is much more frequency particularly in the off-peak hours."

Rotrand says they're counting on the Quebec government to put its money where its mouth is when it comes to saving energy: to help offset fuel costs and to help buy fuel-saving hybrid buses. Nine are currently being road-tested.