The cost of catching a taxi is set to rise by up to 30 per cent next month after the Napthine government decided to raise fares for the first time since 2008.

Exactly how much more passengers have to pay will depend on a range of factors including the time and day of travel and the distance. It is expected the fare rise will be implemented by the end of May.

The size of the increase varies, but will be greatest for short trips and at times of high demand such as Friday and Saturday nights. This is an attempt to tackle two chronic problems for passengers - short fare refusal by drivers and a shortage of taxis on Friday and Saturday nights. It is hoped raising night-time fares on Fridays and Saturdays will encourage more drivers to work during those hours.