THE new French owner of two of East Lancashire's main bus companies is to increase fares -- just weeks after finalising the takeover.

Transdev Plc today announced that prices on Blackburn-based Lancashire United and Burnley-based Burnley and Pendle Travel services would rise next month.

The firm said it had to increase fares or cut services and blamed the unstable oil market in the aftermath of Hurricane Katrina, which battered the southern states of the USA, as well as political unrest in oil producing countries, for the rise.

However, it was today unable to say when the rises would be introduced, by how much fares were going up and which routes would be affected.

Today Tony Martin, the county councillor for Burnley Central West and Lancashire's sustainable transport cabinet member, said the move was inevitable because of rising oil prices.

However, he added that the increase could drive people from public transport into cars.

The Labour member said: "When prices go up it can end in a spiral of decline with people using cars.

"This will mean there are less people on the buses so prices have to go up again until there are no buses left."

Brian Jackson, East Lancashire co-ordinator for Friends of the Earth, sympathised with the firm and called on them to negotiate with the government for extra subsidies.

He added that local authorities should not pay more because that would mean rises in council tax for householders.

Mr Jackson said: "We have lost local shops and post offices and people now have to travel.

"What will happen to the elderly and those who cannot afford to run cars?

"They are going to be marooned in their homes."

Transdev spokesman Gareth Morgan said that the company was paying 30 per cent more for fuel than 12 months ago and he hoped passengers would understand the increases.

He added: "In recent months the oil markets have fluctuated for a variety of reasons; the effect of hurricane Katrina on refining capacity in the Gulf of Mexico and the possibility of political unrest in large oil producing nations, to name just two.

"While we have sought to absorb the cost increases that we experienced during the summer and autumn, fares will have to increase in order for us to continue to operate our services at existing levels."

Transdev last month bought the majority shareholding in Harrogate-based Blazefield Holdings Ltd, owner of the two East Lancashire companies.

The French-owned firm operates a number of bus services in the UK, including London United and London Sovereign as well as public transport in Paris and services in Portugal, Belgium, Spain, Italy, Germany and Australia.