Catching the bus in Tauranga will cost people an extra 40 cents from today.

The BOP Regional Council's bus fare increases took effect today with the basic adult fare increasing from $2.60 to $3 and from $2.08 to $2.40 for an adult using a Smartride card.

The cost of catching the bus in Tauranga will rise from today.

The BOP Regional Council Public Transport subcommittee decided to increase the fares on June 29 and expect the increase to drive away some passengers but not enough to lose the council any more money.

Due of the nature of the contract with Go Bus the regional council inflation adjusts what it pays the bus company, and keeps all the bus fares.

In spite of more people travelling by bus in Tauranga, the income received by the regional council from bus fares is not increasing at the same rate – and not meeting the cost of inflation payments the regional council paying to the contractor Go Bus. Inflation payments are exceeding any additional revenue.

In the staff report to the transport sub committee that recommended the increase, the new fares are expected to return an additional $308,000 in revenue for the council, but lose about 64,000 paid bus trips.

The staff report advises the loss of passengers is expected to be absorbed by general growth over time and have minimal impact. Past fare increases have not caused any noticeable reduction in passengers.

Survey information reveals 20 per cent of those surveyed regard the $3 fare as too expensive. It's a number the council says means a high proportion of bus users will continue to use the bus.

In the last six quarters the Tauranga buses have cost the regional council $194,234.

Council staff estimates if the fares were inflation adjusted in the last six months, the council would have received an extra $170,000, but carried about 39,000 fewer passengers.

In the same six month period the regional council paid Go Bus $271,039 in inflation adjustments.

The next step is to examine Tauranga's concession fares for students and the elderly, on which staff are to report back to the transport subcommittee in the New Year.

The present view is if the council removes concessions suddenly, too many people will stop using buses. But if concession levels and the numbers of eligible groups are reviewed over time, fewer passengers will be driven away.

Staff recommendations are guided by the regional council's policy, which is currently interpreted to be in favour of a flat fare structure with discounts for frequent use, rather than a full concessionary fare scheme. Tauranga has concessions, but Rotorua does not.

These are the new fares.

Adult Cash: $2.60, $3.00, up $0.40 (15.3%).

Concession Cash: $1.60, $1.80, an increase of $0.20 (12.5%).

Adult Smartride: $2.08, $2.40, the biggest percentage increase, $0.32 (15.4%).

Concession Smartride: $1.28, $1.44, $0.16 (12.5%).