The city of St. John’s has approved a 23 per cent increase in taxi fares.

The recommendation was presented to the Committee of the Whole on November 3rd following consultation with a number of local cab companies.

Council Lead for Transportation and Regulatory Services, Maggie Burton acknowledged increasing costs that are making it difficult for drivers and companies to stay viable.

The last rate increase was in 2011, and since then, there has been a 200 per cent increase in insurance costs for drivers. That, added with increases in the price the gas, minimum wage, and the basic cost of living led cab companies to seek out the increase.

The flag rate for the first 0.1 km will be $3.92, for each 0.1 km rate will be $2.18. Waiting time will be the equivalent of $35.22 per hour. Applicable taxes may be added to the rate shown on the meter according to Burton. The new cab fares are set to come into effect on Monday, January 3rd.