Bus users face higher fares and reduced services as a result of the rising cost of diesel.

Transport firm Go-Ahead is warning it will have to cut services and increase fares because of the high cost of fuel.

The Newcastle-based group runs services in East and West Sussex and owns Brighton and Hove Bus and Coach Company, which has raised fares by 50 per cent in the last five years.

During the last six months Go-Ahead's diesel bill has risen £4.7 million, while its profits have fallen by 11.2 per cent.

Roger French, managing director of Brighton and Hove Bus and Coach Company, said there were no plans to increase the cost of tickets bought on board buses.

But he said the firm would look at increasing the cost of daily, weekly and monthly tickets bought in advance.

He said: "It's a struggle to balance the books because the cost of diesel is still very high. The fare increases introduced in December have been a help but we are watching the cost of diesel closely.

"In the short term I shall not be putting fares up and we are looking to increase services. We're increasing the number of buses on the route between Eastbourne and Brighton so there are six an hour this summer."

He said free bus passes for pensioners, being introduced in April, would not make any difference to his balance sheet because councils were not paying enough for them to be profitable.

Bus fares in Brighton and Hove are among the highest in the country.