For a Wollongong commuter travelling to Sydney, from January 5 the cost of a single ticket will rise from $8.40 to $8.60 with a weekly return ticket rising by a dollar to $61.

Transport Minister Gladys Berejiklian said the rise was in line with the cost of living and was lower than the maximum increase recommended by IPART.

"Under [the] decision, public transport fares will increase in line with CPI, supporting our commitment to keep prices low for customers as we continue to make improvements across public transport," Ms Berejiklian said.

"We have always said that fares will only increase in line with CPI until there are demonstrable improvements in customer service, and while we are seeing a significant change for the better, we believe there is still work to do."

However prices will not rise for the new Opal card system - which has yet to be rolled out in the Illawarra.

This is viewed by some as a move to lure people onto the Opal card.

Ms Berejiklian declined to comment on the fairness of raising paper ticket prices for South Coast commuters while they did not have the option to purchase an Opal card.

NSW Opposition Leader John Robertson said the rise would mean Sydney commuters living in Wollongong would pay an extra $260 a year.

"There is no excuse for the Premier to increase public transport fees yet again while running an unreliable system."