SEATTLE -- Weeks after King County told bus riders it would hold off on fare increases, Metro said Tuesday that fares could soon go up.

For Metro riders, the increase would be the second this year.

In July, KIRO reported that a 25-cent proposed fare increase would not get Metro out of a budget deficient and Tuesday the agency said it is dipping into cash reserves and scaling back capital projects to try and make up for the shortfall.

Starting Nov. 1, the bus service is proposing a 25-cent fare increase.

In March, a 25-cent increase went into effect. The increase was the first since 2001.

Metro said ridership is at an all-time high as people are driving less and the agency has to raise rates or cut service.

The transit agency said diesel fuel costs are skyrocketing and that 61 percent of its budget comes from sales tax. Officials said that revenue stream is dropping due to the faltering economy.

"It's kind of a perfect storm. I have been in this industry for many years and I have never seen anything at all like this," said Kevin Desmond with Metro Transit.

Officials said that for every 10 cents that diesel fuel goes up, it costs the agency $1 million.

Metro said another 25-cent increase could go into effect in January 2010.