The cash fare for a single Tube journey in central London is to rise from £3 to £4 next year, prompting criticism from passenger watchdogs.
Oyster cards should be made easier to obtain, say watchdogs
Cash fares for bus journeys in zone one will also rise from £1.50 to £2 as part of the mayor's 2007 fares package.
London TravelWatch has condemned the 33% hike saying it will make the city "even more expensive for visitors".
Oyster card users face smaller rises as mayor Ken Livingstone reduced a planned 10% increase in bus fares.
In 2004, Mr Livingstone announced bus fares would rise by 10% above inflation for three years to help fund investment.
This year, however, the overall increase will be just 3.8% above inflation, a reduction he attributes to better management, efficiency savings and a rise in advertising revenue.
NEW FARES FOR 2007
Tube zone 1: £4 cash (£3 currently)
Tube zone 1: £1.50 Oyster (£1.50)
Bus (all zones): £2 cash (£1.50)
Bus (all zones): £1 Oyster (£1)
The Oyster peak single fare remains frozen at £1, while a one-day bus pass stays at £3.50. The off-peak fare will rise from 80p to £1.
On the Tube Oyster single fares will remain the same across London while travelcards will rise 2% above inflation.
TravelWatch, the watchdog for transport users in London, said it would be "a relief" for passengers that bus and tram fares would not be rising as much as had been previously announced.
But it said it was "imperative" that more was done to make buying Oyster cards outside London and abroad easier.
"Otherwise people will just be priced off the tube and buses altogether and might think twice about coming to London," said its chairman, Brian Cooke.