KNOXVILLE, Tenn. (WVLT) -- High gas prices have more Knoxville drivers pumping money into bus fares instead of their gas tanks.

The average price of a gallon of unleaded jumped to a new record average $3.64 Thursday. That's 41 cents more than you paid in April, and almost 80 cents more than last year.

Knoxville Area Transit, or KAT, says that has drivers swapping their car seats for bus seats.

But the pump prices could still catch them at the bus stop.

That's because KAT's considering raising fares or cutting routes -- all to pay it's fuel bill.

It's been Dallis Fuller's daily routine “every since gas prices started getting ridiculous." He ditched the pumps for a $40 unlimited monthly ride ticket on KAT two years ago.

So how much has he saved on gas?

“Hundreds! Maybe two hundred dollars in gas. It's not expensive."

More and more drivers have taken a seat beside him.

KAT estimates ridership has increased more than 10 percent since last year. That's about 500 more passengers taking up seats everyday.

The same gas prices causing more drivers to catch the bus also could make their bus trip more expensive, or completely cut their route.

Cindy McGinnis with KAT says, “Our expenses are exceeding our revenues."

KAT counted on carrying passengers at $1.90 a gallon for bio-diesel, but now it drops off riders at nearly double that -- $3.40 a gallon.

McGinnis says, “Fares is the easiest option, but that doesn't quite save us much money as fuel increases."

That's because fare's account for just more than 10 percent of KAT'S revenue.

Most of the bus budget -- more than 40 percent -- is subsidized by the City of Knoxville.

Mayor Bill Haslam says, “Hopefully, we'll analyze routes and figure out the smartest way so we don't have to cut routes, and we certainly don't want to raise people's taxes."

But raising fares could take Casey Captain off the bus.

She says, “Depending on much they go up, I'll just go back to driving myself because it can be an inconvenience sometimes with the wait."

It’s a bus stop wait Fuller doesn't mind.

“You have to grunt, grab it, and go on up with it."

…As long as route cuts don't make it longer.

KAT says these are only options right now. The public transportation service hasn't fully analyzed the alternatives, and KAT doesn't know if it would raise fares or cut routes first.

That's because even if they cut a less-traveled-, or less popular route, that bus impacts other routes. It's a domino effect.

The City of Knoxville has proposed $7 million for KAT next year. Mayor Haslam says that's about a 10 percent increase.