Sue Muffler has used a bus service on the New South Wales Far South Coast more than a dozen times to access things like medical appointments, Sydney Airport, or simply enjoying a taste of city life.

A 300-kilometre trip from the 75-year-old's home in Merimbula to Bomaderry had cost her just $2.50, but has now skyrocketed to $65.

Ms Muffler said the bus had been an accessible way for her to reach the start of the South Coast Line on the Intercity Trains Network at Bomaderry without needing a car.

"There are a lot of people who can't afford to fly [from Merimbula to Sydney] because that's incredibly expensive," she said.

"Plus there's the cost of fuel."

Ms Muffler said she would be willing to pay more than $2.50 for the trip, but $65 one way was a shock.

"I think that is just an incredibly huge amount that a lot of people won't be able to afford," she said.

"I don't know what they'll do, what's the alternative?"

Bus company seeks legal advice 

The price rise is the result of the end of a state government contract with a privately-owned bus company.

Premier Motor Service was contracted to provide a deregulated long distance bus services on the New South Wales south and north coasts. 

The services operate from Bomaderry to Batemans Bay, Bega and Eden and Tweed Heads to Ballina and Lismore.

More than 28,000 passengers a year use the South Coast service and about 60 per cent are concession card holders.

The company received a notice from the state government on July 31 that stated its "funding agreement concluded on 31 May 2024 and no further funding will be paid in relation to the Eden-Bomaderry and Lismore-Tweed Heads service".

The letter was sent after the bus company had sent an invoice to the government requesting payments for June 2024.

The letter stated that as the request for payment was after the expiry of the funding agreement the "invoice could not be paid".

Premier Motor Service said it was shocked and disappointed at the decision.

It said it was seeking legal advice and could not comment further.

Local politicians hit back

Independent Kiama MP Gareth Ward used question time in Parliament on Wednesday to call on the Premier to reverse the decision.

"Fares for a concession card holder travelling between Bomaderry in my electorate to the Far South Coast will increase from $2.50 to as high as $65 one way," Mr Ward said.

Chris Minns indicated he would take the question on notice.

Mr Ward said he was concerned the cuts had been made without consultation.

"In fact, they [Premier Motor Service] have been told they will have to absorb costs that came from the end of this agreement, [an agreement] that the provider just thought would continue. It's been an agreement in place for many, many years," he said.

"Because of the increase in cost this puts this service in jeopardy. It could become unviable."

He said locals have no other options and has launched a petition aimed at saving the bus subsidy. 

"For South Coast locals this is the only public transport service that runs from Bombaderry all the way to Eden," he said.

In response to the criticism, South Coast MP Liza Butler said she was "immensely concerned" by the situation.

"We are facing a cost of living crisis", she said in a statement.

She said she knows many residents in her community who will not be able to afford the price increase.

Ms Butler met with Regional Transport and Roads Minister Jenny Aitchison on Thursday.

Ms Aitchison said she will continue meetings to "work on a solution to this issue".