Black cab fares in Sheffield could rise by 20p a mile if plans are approved at a meeting at Sheffield City Council's licensing board.
Calls for an increase came after the Sheffield Taxi Trade Association said its members were suffering due to the rising cost of fuel.
The increase would take the average cost per mile up from £1.53 to £1.73.
Fares were last reviewed in October 2010 when an increase of 10p was implemented.
Hafeas Rehman, chairman of Sheffield Trade Taxi Association, said: "Other forms of transport like the buses and the trams have increased their fares and we have always tried to refrain from doing that.
"It has got to the point that we need to increase the fares as our members are finding it hard to make a living."
The meeting to discuss the proposed fare increase is due to take place later on Thursday.