THE rise in the cost of fuel could potentially hit Newport Transport for an extra £100,000 this year.

But Newport Transport managing director Scott Pearson told the Argus that the firm, which owns the Newport Bus service, is taking steps to mitigate the fuel price rise.

He said the company is using new technology that could reduce its costs by between £20,000 and £30,000.

Anewsystem, called Green Road telematics, rates drivers green for good and red for bad according to how energy efficient their driving is.“ Fuel has put our costs up in real terms by 15 to 20 per cent, which has not been passed on to the customer because we’ve increased the quality of the service – the quality of the vehicles being used,” he added.

A third of the company’s fleet was replaced this year, with the firm saying it has spent £3m on new buses.

Mr Pearson added that the rising cost of fuel doesn’t put the firm in danger of making a loss, and said that the company is currently in profit.

The firm is set to run its free bus promotion on all of its routes on Christmas Eve.

All buses, including services to Cardiff, Chepstow and Monmouth, will be free to use on the day from 5am until the last bus at 8pm.

Newport Bus has also launched its new city circular routes 4 and 5, serving the city centre, Baneswell, Stow Hill, Belle Vue Lane and Cardiff Road.

The route will be free to use until February 2012.