Tokyo taxi fares to surpass ¥700 line to cope with surging oil prices

The government announced Friday a 7.2 percent hike in Tokyo taxi fares from Dec. 3, increasing the upper limit of the drop fare for the first 2 km from ¥660 to ¥710, to improve drivers' working conditions and help taxi firms cope with surging fuel prices.

It will be the first increase in Tokyo taxi fares since April 1997. The Land, Infrastructure and Transport Ministry also made public Friday taxi fare hikes of 7.9 percent in Tokyo's suburbs, including the city of Hachioji, and a 7.7 percent rise in Yokohama and Kawasaki.

Similar requests for taxi fare increases have been made across Japan and the ministry has already approved hikes in seven prefectures, including Akita, Nagano and Oita. Fare increases in other areas are expected to be endorsed by year's end.

Land, Infrastructure and Transport Minister Tetsuzo Fuyushiba told a news conference Friday, "We need to improve (taxi drivers') working conditions to continue to offer safe and convenient services.

"In order to minimize the burden on users, we strictly examined" the margin of fare hikes, he said.

Economic and fiscal policy minister Hiroko Ota, who had been critical of the price rises because of their effect on consumers, accepted the Tokyo taxi price hikes, saying at a separate news conference that the increase will be smaller than the originally proposed 18.7 percent.