Sustrans Cymru is warning the increase in fares but drop in usage could lead to transport poverty in Wales.
The UK Government say that they hope to announce plans for a new road around Newport with a couple of months
Today marks 50 years since the publication of the Beeching report, which led to the closure of large sections of Wales' rail network.
Sustrans policy advisor Matt Hemsley has spoken to ITV News about the effect 'transport poverty' could have on the Welsh economy.
It comes as Department for Transport figures reveal Wales is the worst-hit part of the UK for fare increases - while also seeing the biggest fall in passenger journeys.
Mr Hemsley told us: "Buses are really important, particularly for people on lower incomes; young people who are struggling with the costs of owning and running a car as the costs of insurance and fuel go up.
"This is a big problem for the economy and lots of people."
A committee of Assembly Members has said that the Welsh Government should have the power to control the regulation of buses and more of a say in our rail networks in order to provide an easy and seamless public transport system.
The Enterprise and Business Committee was told that there is a 'silent problem' of transport poverty across Wales with a quarter of all households without a car. 1.5 million people are isolated and unable to access key services because of inadequate transport, particularly in rural areas.
– Nick Ramsay AM, Chair of the Enterprise and Business Committee
The Committee believes that people in Wales should be able to use a simple and seamless integrated public transport system for whatever purpose, be it popping to the local shop or travelling across Wales for an important appointment.
There needs to be a greater emphasis on pressing travel operators to work together with stakeholders to co-ordinate timetables, connect services and publish real time information for bus, rail and community transport networks.
The Committee's report calls for the devolution of powers controlling rail and bus services to assist the Welsh Government in improving the system.
– Mark Langman, Network Rail route managing director, Wales
This new viaduct and redoubling of the railway through Gowerton will remove the current bottleneck created by the stretch of single line and provide capacity to run more trains in the future.
This project joins a number of other rail improvement projects in South and West Wales that will help deliver better journeys and boost economic growth in the area.
As well as making it easier to travel to and from West Wales, they will help to boost local employment opportunities.
Network Rail video
Network Rail and Arriva Trains Wales say the new Loughor Viaduct will carry improved train services to West Wales.
It will carry two tracks between Swansea and Llanelli instead of the previous one.
The old Loughor Viaduct has been replaced and work is focusing on laying two tracks through Gowerton for the start of services on Monday.
George Osborne has told ITV News that there will be no tolls on any new M4 relief road around Newport.
But on a visit to Cardiff, the Chancellor said he hope to give the go ahead to a scheme that would improve the road within a couple of months.
The Welsh Government has welcomed George Osborne's promise that an announcement on a scheme to improve the M4 at Newport will come in the next two months. But a spokesperson said there are 'important issues that remain to be resolved.'
We have been pressing for an agreed funding package for a strategic enhancement to the M4 for many months. It's very welcome that the Chancellor has expressed support in principle and said a decision will be made on the details shortly. However, no deal has been done yet and we will continue to work through the important issues that remain to be resolved.
The Chancellor, George Osborne, has ruled out using tolls to pay for a new stretch of the M4 motorway around Newport. He dismissed claims that the Treasury was considering such a move as 'misreports.'
He told our Political Editor Adrian Masters that he's 'never seen or considered a proposal to toll the M4.' But he said he hoped to give the go-ahead 'in a couple of months' to a scheme to improve it which has been the subject of talks with the Welsh Government.