HAILING a Sydney taxi on a Friday or Saturday night will cost $6.50 before passengers have gone anywhere under a recommendation by the pricing regulator.
The Independent Pricing and Regulatory Tribunal (IPART) has recommended increasing the flag fall, or cost of hailing a cab, but reducing the amount of money paid for waiting times and distance travelled.
The current flag fall is $3.50.
But this should jump to $4 to encourage drivers to accept short fares, IPART's draft report says.
It also recommends adding a surcharge of $2.50 for all fares between 5pm and 5am on Friday and Saturday nights to encourage more taxis to be on the road when they are most needed.
However IPART chairman Peter Boxall says overall fares should fall by an average of one per cent depending on when and how far passengers travel.
"These proposed changes are all about making it easier and cheaper for passengers to catch a taxi, and more profitable for operators and drivers to provide the service when it's needed," Dr Boxall says.
The report says passengers travelling more than 4km outside weekend peak hours would pay less.
IPART will make its final recommendations to the NSW government in June.
Opposition transport spokeswoman Penny Sharpe said it would be better to provide improved public transport so people could get home safely on a Friday and Saturday night.
But she said passengers would welcome cheaper taxi fares as cabs "filled the gap" in public transport.
NSW Taxi Council CEO Roy Wakelin-King said the recommendations were bad news for cab drivers and operators who needed to make a decent return on fares.
"The problem with this report is that by putting downward pressure on the fares you are creating disincentives which offset any incentives which have been created," Mr Wakelin-King told AAP.
Mr Wakelin-King also rejected the idea that Sydney cabs were too expensive.
"There have been independent surveys which have put us, out of 75 countries, about 32nd," he said.
"We have got competitive fares relative to the cost of living here in Sydney."
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