The Dominion Post reports that Greater Wellington regional councillors have approved an average 8.87 percent rates rise for the 2008/09 financial year, citing rapidly rising world oil prices.

While the GWRC went to public consultation with a projected 6.77 per cent increase, rising international fuel prices added $1.65 million to its budget in less than three months, forcing officers to raise their recommended rise.

The rates rise for the 2008-09 financial year will be on top of a 10.2 percent increase in public transport fares due to take effect on September 1.

Wellington councillor Paul Bruce said the fares rise would have a disproportionate effect on people having to put up with inadequate services. He said rises would hit train users, though the region's electric trains used no diesel.

Kapiti councillor Nigel Wilson said public transport was a public good and a larger proportion should be rates-funded.

Both proposed that the fare increase be deleted and the $1.5 million it was budgeted to raise should instead come from rates.

But chairwoman Fran Wilde said it would be foolish not to have fare rises when oil prices were rising so quickly. The increases were also needed to help improve public transport infrastructure.

Mr Bruce and Mr Wilson were the only councillors to vote for their amendment.

Councillors then approved the rates rise on a voice vote.