CIÉ has sought permission from the Government to increase bus and rail fares in its three constituent companies by 10 per cent from January.
The application for a general fares increase across Dublin Bus, Bus Éireann and Iarnród Éireann has been submitted by CIÉ to Minister for Transport Martin Cullen in recent days.
Informed sources said last night that Mr Cullen believed the application for increases of about 10 per cent was "excessive".
Department of Transport sources said the CIÉ application was currently being examined.
A CIÉ spokeswoman last night confirmed it was seeking fare increases of around 10 per cent and cited rising fuel costs as the main factor.
The spokeswoman said in Dublin Bus alone fuel costs would be around 30 per cent higher than in 2004.
Dublin Bus currently pays around €10 million to €12 million annually for fuel.
The company currently hedges its fuel requirements one year in advance. The spokeswoman said this meant that Dublin Bus was currently using fuel bought at 2004 prices. She said that fuel to be used next year would have to be purchased at the current high price levels.
Mr Cullen told the Dáil on Thursday that although it is without statutory basis, it has been a long-standing convention that increases in standard single CIÉ fares required approval by the Minister for Transport.
However, he indicated that he was considering changes to this requirement in the future.
"In the context of wider reforms of the public transport market, it remains my intention to establish an independent national public transport commission to regulate the market," he said.
"Among the range of functions I am considering for such an independent commission is the regulation of fees," Mr Cullen said.
Bus and rail fares were last increased at the beginning of the year.
However, the average 3.5 per cent increase sanctioned by the Government was less than half the amount sought by CIÉ for 2005.
In autumn 2004 CIÉ applied for increases of around 8 per cent in fares. Its submission stressed rising fuel costs and the loss of business following the introduction of the Luas service in Dublin.
The Department of Transport is expected to make a determination on the application for a general fare increase for next year within the next few weeks.
