TAXI passengers could be slugged about $30 for a 3km inner-city Melbourne trip under a new pricing proposal.

A taxi-fare shake-up has recommended passengers be stung almost $20 just to get in cabs in peak times for pre-booked trips.

A new maximum peak booking charge capped at $10 is being recommended to boost the amount of taxis riding the streets in peak times and manage how they are allocated to customers.

This would be on top of the $6.20 flag fall and $2 booking fee.

Under the new pricing structure trip from Richmond to the city would rise to $29 and a 10km ride from Caulfield or Flemington to CBD would jump to almost $50.

It would be up to each individual operator to decide if they pass the $10 charge on and must alert the passenger to it.

Other recommendations the Essential Services Commission flagged are to start public holiday pricing the day before and the Friday and Saturday peak hour to kick-off from 7pm instead of 10pm and run until 4am.

No price changes were suggested for off-peak periods.

media_camera The proposed fare slug comes just two years after taxi prices increased by 12.5 per cent.

The previous ESC review led to fares increasing in 2014 by 12.5 per cent.

The discussion paper noted there was an “accelerating decline” in the number of metropolitan taxi trips in the first half of 2015.

It was a four per cent year on year drop in the January to March quarter, followed by a 9 per cent year on year decline in the April to June quarter.

“This outcome is most likely the result of competitive pressure from increasingly prevalent commercial passenger vehicle services that consumers are choosing as alternatives to taxis,” the report said.

Ride-sharing app Uber has stolen many traditional taxi passengers with the lure of cheaper fares and a better customer experience, including arriving on-time, free water and mints and polite drivers.

Uber continues to operate illegally in Victoria as the State Government searches for a solution to regulate the popular service.

media_camera Uber has stolen many traditional taxi passengers. Picture: Ian Currie

The ESC report said there was “increasing pressure” on taxi service providers to lower fares and improve services.

“We’re concerned that there aren’t enough taxis on the road on Friday and Saturday nights

and on the evenings before public holidays, meaning customers often have to wait for long

periods before finding a cab,” ESC Chair Dr Ron Ben-David said.

“We’re proposing fare structures that will induce taxis on to the road during peak times and,

in particular, reward them for providing customers with a more readily available and reliable

pre-booked service.”

The Victorian Taxi Association said: “In principle, the VTA strongly supports the approach taken by the ESC to allow a greater role for taxi businesses in the pricing of their services.”

Should the taxi industry be in favour of the new booking-fee, the ESC has vowed to implement it.

The report also mentioned an overhaul of taxis waiting at Melbourne Airport was needed as drivers spent an average of 76 minutes in the airport queue — double the time spent searching or queuing for passengers elsewhere.

Reforms rejected from the initial proposal include distance charge per kilometre starting at a high rate but then dropping when a certain distance is reached, increasing the booking fee, and allowing passengers to choose a fixed or metered fare.

WHAT YOU COULD BE PAYING FOR A TAXI

Acland St, St Kilda to City

6km

$34

Swan St Richmond

3.9km

$29

High St, Northcote

8.7km

$39

Chapel St, South Yarra

4.7km

$30

Brunswick St, Fitzroy

5.3km

$32

Hawthorn Rd, Caulfield

10.4km

$44

Flemington Rd, Flemington

9.4km

$46

aleks.devic@news.com.au

@AleksDevic