Fylde Hackney Drivers' Association wants the increase due to the rising cost of fuel.

The association has also asked Fylde Council for permission for a fuel surcharge to be applied to fares when the price of fuel reaches a set figure.

The fare increase would be achieved by reducing the distance travelled between the 20p increments by 10 per cent.

At present it costs the customer £2.30 for the first 480 yards and 20p for subsequent 240 yards under tariff one.

The association wants to hike that to £2.30 for the first 432 yards with 20p for 216 yards after that.

It also wants to bring forward late night tariff two to 10pm, the same as Blackpool.

Should the in increase be approved it would mean a tariff one customer paying £6.90 for a three mile journey instead of the current £6.50.

The request was due to go before the council's public protection committee yesterday which was told in a report that according to the AA Pubic Affairs Fuel Price Report of June 2008, since October 2007 the average price of a litre of diesel in the North West has increased by 31.7p to 130.8p, a rise of 32 per cent.

However, local taxi firm Whitesides said it would not fall in line should the increase go ahead.

Director Daniel Whiteside said: "This fare increase doesn't necessarily mean Whitesides Taxis will be going along with it.

"We want them have their increase, they need it, but Whitesides Taxis run a lot more efficiently than a street cab, we don't necessarily need to increase."

Mr Whiteside said keeping fares down also showed its loyalty to the customer who in turn would show their continued support to the firm.