The 3-km base fare for a taxi in Beijing will rise by 30 percent from 10 yuan (1.6 US dollars) to 13 yuan as of June 10, the city announced on Thursday.
The Beijing Municipal Commission of Development and Reform held a public hearing in May to solicit opinions on the fare hike, which is supposed to address the difficulty in hailing a cab in the gridlocked city, as well as improve drivers' income.
According to the new plan, a cab fare will be charged at 2.3 yuan per km after the first 3 km. Meanwhile, a 1 yuan fuel surcharge will continue to be imposed on every taxi journey.
During rush hour, every five minutes of waiting will be charged equivalent to 2 km of a fare.
The commission said taxi companies will be banned from using the price rise as an excuse to raise franchise fees from drivers.
Beijing taxis carry about 700 million passengers every year, accounting for more than 6 percent of the capital's transport.
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