Taxi firms are being forced to hike up their rates to tackle soaring fuel costs.

Prices for petrol and diesel reached record highs on March 20 - £1.67 and £1.79 per litre, respectively.

The steep rises are coming at the same time as other cost of living price increases for people across the country.

It comes amid hints the chancellor Rishi Sunak will cut fuel duty in the spring budget.

Chris Harvey, marketing manager of ABC Taxis, said: "Unfortunately we are going to have to an extra 5pc to 10pc per journey.

"We want to remain one of the cheapest taxi firms in the city but we have have had to increase prices in certain zones.

"One of the main reason behind the price rise is the fuel price increase. We will make it proportionate to the length of the journey and do the best we can. Unfortunately that is the way of the world.

"We have held back as long as we can on rate increases. We would rather increase prices slowly rather than panicking with a knee-jerk reaction."

He added: "Drivers are feeling the pinch. They are looking for fare increases to go up to cover their overheads which are going up.

"I don't think customers are happy with any price increase, especially if their costs are increasing at home. It is another pressure on families which are feeling the pinch.

"Coming back from Covid a lot of businesses are recovering and it is difficult reacting to these fluctuations."

He added the demand for taxi journeys was back to pre-pandemic and plans to get more electric vehicles on the road in the city centre were "going in the right direction".

But he added the prices of vehicles are still too expensive and road infrastructure is still not good enough.

John Walker, owner of Drayton-based Enterprise Taxis, said: "We have put our prices up by 12pc because the price of fuel is bad."

He added journeys were costing drivers more money because of several roadworks and diversions in the city, causing journey times to increase.

"It is a bit bonkers," Mr Walker said.