BLACK cab fares will be hiked up as taxi drivers cover the sky-high price of fuel.

Manchester council has allowed a special surcharge on every journey - on top of an above-inflation fare increase that came into force in April.

The move comes as prices at the pumps finally began to fall. It led to claims that hard-pressed customers - already paying high rates to fuel their own cars - could soon find taxis too expensive.

The flat-rate premium, which will add 20p to the cost of even the shortest trip, was requested by the Manchester branch of the Taxi Owners and Drivers Association.

They had originally asked for 40p per journey - and drivers' union Unite called for 60p.

Branch secretary George Simms claimed 'unprecedented' fuel costs were causing 'considerable hardship'.

But the AA said unleaded fuel prices had dropped this month from a record £1.20 per litre in August to £1.12 - still much higher than January's price of £1.04.

Manchester Cab Committee chairman Pat Connor said: "We wanted 40p but we realised that fuel is coming down.

"Drivers have been losing around £40 per week. It has been very hard to be a taxi driver during the fuel crisis."

The rise was approved in principle by the council's licensing committee, but it cannot come into force until after a 15-day notice period in October.

Committee chair Tony Burns said the surcharge would be 'constantly kept under review'.

He said: "It will be temporary as all the indications are fuel prices are falling. The council thought 20p was not unreasonable in the circumstances."

Manchester is the only borough to approve a surcharge - although Trafford and Tameside may follow suit.

David Fish, from Radio Cars Manchester, said: "If rates go to high, people will think twice about taking a cab and will go for the bus or the car instead."