New York City officials approved an average 17% increase in taxi fares Thursday, the first change since 2006 and a victory for drivers who argued their real wages had declined amid soaring gasoline and living expenses.

The Taxi and Limousine Commission voted in favor of the jump by 6-2, with one abstention. City officials, including TLC Chairman David Yassky and Mayor Michael Bloomberg, had publicly backed the measure as way to help drivers recover from financial position slip in recent years.

The...