SOMBA K'E/YELLOWKNIFE - Taxi fares may soon increase to keep up with rising fuel prices if Yellowknife cab drivers get their wish.

Next week, city council will consider a request from City Cabs to raise rates for the first time in nearly three years.

Mohamed Basha, a City Cabs driver for three years, says the city needs to be fair and raise taxi rates. - Katie May/NNSL photo

In a May letter to the city, the company asked that the flag rate increase from to $5 from $4, plus 25 cents for each additional 100 metres, up from 16 cents.

City administration recommended council instead adopt a smaller meter rate of $4.50, with 20 cents per 100 metres.

City Cabs driver Mohamed Basha said he hopes the city can work out a fair deal with taxi drivers.

"The cost is very high," he said, adding drivers need to pay for insurance, car maintenance and dispatch services in addition to filling their fuel tanks now that gas is averaging about $1.50 per litre.

"We're suffering too much," he said. "We need the city to be fair with us."

On Monday, Basha said he drove back and forth across town for more than four hours and made only $25, which won't even pay for fuel used up during that time.

"We don't want to put so much pressure on the customers but I hope the customers understand," said Basha.

"It's not because we are pushing for money, it's just because we're trying to cover our expenses, that's all."

The manager of Yellowknife's other cab company agreed.

"The fact is the rate has to go up," said Ted Yaceyko of Diamond Cabs.

"I, for one, never like to see rates go up but we have to be realistic. It has to happen sometime."

It's inevitable that hiked fares will discourage some people from taking cabs, Yaceyko said, but an increase is necessary.

"Somebody will walk that extra block instead of taking a cab but it can't be helped," he said. "That's the cost of doing business."

He hopes to lower that cost by investing in more hybrid cars. Within four years, he expects hybrid cars to make up at least half of his fleet. Currently, Diamond Cabs has three hybrid cars and City Cabs has two hybrids.

Coun. Bob Brooks said the city's recommendation is too low.

"I don't think it's realistic on our part," he said at a priorities, policies and budget committee meeting.

He agreed with the taxi company's original request of a $5 flag rate.

Coun. Paul Falvo said the city should exercise caution any time it sets rates for private industries, noting Hay River does not regulate its taxi prices, which currently stand at a flag rate of $4.65 plus 20 cents per 100 metres based on a gas price of $1.51.

Coun. Kevin Kennedy said if taxi rates have to go up, the increase should be modest.

"While fuel is certainly a factor in taxi prices, it's not the only factor," he said. "Obviously we are in the business of regulating taxis whether we like it or not."

Coun. Shelagh Montgomery said she was prepared to support the recommendation.

Council is expected to decide at next Monday's 7 p.m. meeting.