A request to the city made by both City Cabs and Diamond Cabs calls for the flag rate -- the initial fare -- to jump from $2.75 to $3.25. They also want to change the moving rate from 10 cents per 75 metres to 10 cents per 70 metres.

The changes would mean a $1 fare hike for a five-kilometre ride.

The cab companies say the increase is needed after insurance rates almost doubled last year and fuel and maintenance costs continue to creep higher.

"The cost of operating a taxi, like any other cost of living, has gone up tremendously," said Shirley McGrath, general manager for City Cabs.

The city, which regulates cab fares, last increased the base rates in 2000 to $2.75 from $2.45.

But some local groups say higher fares could kill their programs.

"I think it's a huge problem," said Arlene Hache, executive director of the Yellowknife Women's Centre. "Cab prices going up is really going to impact poverty-stricken people."

The Women's Centre pays cab fares for women with medical emergencies, often to transport them or their children to hospital. She says higher fares would kill the program, and the Women's Centre will be forced to call in an ambulance instead.

However, Diamond Cab office manager Sherry Graham said cab drivers -- who average a $30,000 annual salary -- need the money to make a living.

"All things considered, it's not that great of a living -- not for Yellowknife. They pay rent, too," she said.

Graham compared Yellowknife rates to Hay River, where cabs charge a base rate of $3.45, then 10 cents per 75 metres. But gas is about 10 cents cheaper and mechanical rates $12 an hour lower in Hay River, she said.

City councillors, who debated the suggestion during committee meetings yesterday morning, supported the increase, which council will discuss on Monday.

"Because we essentially fix the price for cab fares, we've got an obligation to look at making it possible for cab drivers to make a living," said Coun. Ben McDonald.