"It is pretty relevant to the price of diesel," said Mr McPhee.
"But I think the $4.5 million surplus means the council probably could have relaxed the increase, especially when the service leaves a lot to be desired."
Mr McPhee said train punctuality was particularly bad in Wairarapa.
The Wairarapa line was the worst performing line in the region, with 78 per cent of trains on time in the 2012-13 financial year, well below the 95 per cent target. He said GWRC was taking action and had talked to KiwiRail.
He also they had discussed why the better trains were being used for long haul freight and not commuters.
Mr Ponter said the surplus was not justified.
"This means that the council through its own policies, has kept prices high and that this year could actually have afforded to provide fare decreases."
On average, fares have risen by 8 per cent over the past three years and were expected to rise three per cent every year under the council's long-term plan 2012-2022.
Last year, chair of GWRC's economic wellbeing committee, Peter Glensor said regular and small increases to fares were needed to meet increasing costs and service the debts for major improvements. Mr Ponter said it was irrational and did nothing to attract people to use public transport.
In February, 10 out of 13 councillors voted in the October increase and Mr Ponter and fellow councillors Nigel Wilson and Paul Bruce voted against it.
Mr Ponter said it was concerning that peak hour patronage on Wellington buses had dropped by 10 per cent over the past three years.
The number of people on trains at peak hour have also dropped by 0.9 per cent.
"At a time when the regional council has been predicting patronage increases of 3- 4 per cent per annum, we have gone in precisely the opposite direction," Mr Ponter said.