ECM Libra Capital Sdn Bhd said it is unlikely that the government would increase highway tolls at a time when consumers are trying to cut costs.

As a result, the local research firm expects highway concessionaire PLUS Expressways Bhd to receive compensation from the government in the form of cash as well as increase its concession period.

PLUS' scheduled toll increase of 10 per cent was due at the beginning of this year.

The increase would see toll rates rise from the current 13.60 sen per km to 14.96 sen per km.

"(Nevertheless), not getting a toll increase could be a blessing in disguise for PLUS, as it would ensure that traffic volume does not fall drastically due to higher toll fares," said ECM Libra in a report yesterday.

"Consumers may be more likely to look for cheaper alternative modes of transport in order to cut costs. Maintaining the toll rates would ensure that PLUS holds on to traffic volume while still getting some form of compensation," it added.

ECM Libra has a "neutral" call on the industry, and maintains its "buy" rating on Lingkaran Trans Kota Holdings Bhd, with a target price of RM2.22.

PLUS had announced that the overall traffic volume increase in December 2008 was due to public holidays that straddled weekends.

ECM Libra said traffic volume should continue to increase in January 2009 due to the three-day New Year weekend and the four-day Chinese New Year (CNY) weekend.

"However, the higher traffic volume during the CNY week would not translate to a corresponding jump in revenue collection for PLUS as it had given motorists a 10 per cent discount on existing toll rates during that period.

"This special discount was over and above the current 10 per cent discount motorists get when travelling between 12.01am and 7am," it said.