Black cab owners want councillors to back a fare increase of 20p per mile, between five and 10 per cent, and introduce a link between fares and rocketing petrol prices.

Without the increase it is feared the number of Hackney carriages across Fylde – which currently stands at 102 – will tumble as cabbies are forced to park up their motors for good.

Another option councillors will consider is allowing automatic fare increases, at a level to be specified, if diesel prices increase further.

Both Wyre and Blackpool councils have already approved a 20p surcharge for their areas.

Jimmy McLemon, chairman of the Fylde Hackney Drivers Association, says drivers need extra cash just to keep their cars going.

Mr McLemon, 50, from Warton, said: "It is really bad at the moment – I've been driving for 19 years and I have never seen it so bad.

"The prices keep going up and we are having to go to the town hall with a begging bowl.

"There are a lot of drivers who are very close to going to the wall."

Bosses at Blackpool Transport also say rising diesel prices may force an emergency rise in fares.

The company's fuel costs are currently running £1m up on last year and is expected to finish at around £500,000 over budget.

Managing director, Steve Burd, said: "We have said at some stage we are probably going to have to introduce a second fares increase.

"The company's standard practice is to only have one per year but this year we may need the second because of the rising costs."

However chiefs at St Annes-based Whiteside Taxis, which has 85 private hire cars, say they are not planning a rise.

Daniel Whiteside, director of the firm, said: "I believe fuel costs are going to keep rising but when the country is in recession, the worst thing you can do is raise your prices.

"It is difficult at the moment and we are feeling the pressure but the only way round it is to keep your fares cheaper."