Transportation becomes a vital means for human life as it is used for removing, driving, carrying, or transferring objects from one place to another. Damri Bus serves as a city bus in Surabaya passing through toll and non-toll roads. Damri Bus P8 is one of city buses operating from Purabaya (Bungurasih) Terminal to Perak through toll road. This research aimed at identifying direct and indirect cost components of Damri Bus P8 and adjusting its tariff based on Vehicle Operating Cost. The research method employed the Decree of Transportation Minister No. 89 in 2002. The result of calculation on Vehicle Operating Cost of Damri Bus P8 passing the toll road obtained the tariff IDR 5,881.00, whereas the actual tariff based on the stipulation of Indonesian Transportation Ministry is IDR 6.000,00. Thus, it could be concluded that the tariff of Damri Bus P8 was appropriate in which price was determined by considering the increasing price of fuel.
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