Dublin Bus said that the loss of 10,000 customers every day to the Luas was a main cause for the five cent increase in fares announced by the company yesterday.
It said that a hike in fuel costs, higher wage costs and the loss of passengers to the Luas were the reasons behind the calls for the latest fare increases.
In 2004, according to CIÉ, fuel costs for Dublin Bus rose by 27 per cent. Wage costs are also set to rise as Dublin Bus is bound by the national wage agreement.
It has been established that CIÉ, the parent company of Dublin Bus and Iarnród Éireann, had applied for fare increases of at least eight cent, but the Minister for Transport, Mr Cullen, found those proposals "excessive".
From the beginning of next month, all adult cash bus fares are to increase by five cent, with only a small number of child fares escaping the hike. Prepaid daily, weekly and monthly tickets are not subject to the price rises but the company said they are to be reviewed in 2005.
The increases in fares on Dublin Bus and DART services are the latest in a long line of price increases for basic services in the State with fuel, electricity and health costs also on the rise.
A spokeswoman for Dublin Bus said the company has also obtained a five per cent increase in its subvention from the Government. Last year, it received €54 million from the public coffers, which is equal to a quarter of its annual costs.
The price increase was resolutely defended by the company last night.
DART fares are also set to increase in the new year.