TAXI passengers in York are set to face rising fares this year after council chiefs proposed a four per cent increase.

The rises have been agreed between City of York Council and the York Taxi Association and are likely to come into force on May 1.

A special formula is used to calculate the annual increase based on the cost of factors including fuel, motor insurance and the price of cars.

The new fare structure will see:

* The day-time rate of £2 for the first 193 metres reduced to 103 metres.

* The night-time rate of £2.60 for the first 106 metres increase to £2.70 for the first 97 metres.

* The racecourse rate of an initial £5.50 for any journey to or from Knavesmire on a race day will reduce from 2,627 metres to 2,456 metres.

* Rates for successive distances on all journeys will also increase.

Alan Rowley, secretary of York Taxi Association, welcomed the increase.

He said: "Every other industry has had an interim fare increase with the petrol prices through the roof, but we never did.

"It is reasonable for us. We are of the old-fashioned mentality: we just want a fair day's pay for a fair day's work.

"We are hoping it will be approved by the council."

Stuart Robertson, vice-chairman of the association, who calculates the yearly increase, said "I think it is a fair rise.

"The fuel price increase obviously has been extreme this year, but we hope to recover the rise."

He said this year the price of insurance and the cost of buying a car have both decreased, offsetting a much larger increase in fuel costs.

But Coun Gil Nimmo, chairman of the council's licensing and regulatory committee, said fares were already too expensive and he would like to see a lower increase.

He said: "My feeling is that taxi fares in York are too high if we are to encourage people out of their cars.

"The taxi fares should be reduced. I do not think it is helpful for the small distances that are covered by taxis to cost so much.

"I understand that fuel prices have gone up, but I think an average of £5 for a mile-and-a-half journey from York to Rawcliffe is too expensive."

Any objections to the price hike have to be sent to Richard Haswell, the council's head of licensing and regulation by April 18.