Riding the TTC might be the cheaper way in many respects, but the transit agency is already looking into the future and wondering how to cope with surging fuel prices in its next budget.
Although the budget process for 2009 has barely begun, the TTC has to figure out how to deal with a jump in fuel costs expected to rise from about $65 million this year to $97 million next year.
The escalating price of fuel accounts for $25 million of the difference, a boost in service for the remaining $7 million.
"There's $32 million. That's a big increase," said TTC chief general manager Gary Webster. "Where that money's coming from, we don't know."
The TTC's diesel supply contract expires at the end of this year, so the agency will be monitoring prices for a while before signing another contract. But even if prices dipped, a significant increase in the TTC's cost is inevitable, Webster said.
The TTC also has to wait to learn what provincial operating subsidies it might get in 2009, according to transit chair Adam Giambrone.
The province's transportation planning agency is considering its funding now. "One of the things they haven't addressed is fuel cost escalation," Giambrone said.
Because the TTC is not allowed to operate at a loss, a shortfall will force the commission to consider service cuts or price increases.