Increasing costs mean that Hawke's Bay Regional Council is to introduce a small increase to bus fares over the next three years.

Fares on goBay buses haven't moved since 2009, but increasing costs such as a higher rate of GST and fuel fluctuations mean a small fare increase is required.

HBRC Transport Manager, Carol Gilbertson says to minimise the impact on passengers the organisation has opted for a multi-year approach to fare increases, planning a small fare increase of 4-5% per year for the next three years. The first comes into effect on 1 September 2012.

"Evidence and experience in other regions indicates that small regular fare increases have less impact on patronage than larger less frequent increases and are more likely to be accepted by passengers," says Mrs Gilbertson.

The increase is expected to generate an increase of 4% in passenger revenue each year.

Carol Gilbertson says prepaid 'smartcards' are still the cheapest option for passengers, offering a 20% discount on the cash fare. Despite this, cash fares continue to be the most popular with 57% of passengers paying their fare with cash.