TAXI drivers in the south of the county say they are struggling with a double whammy of soaring fuel prices and hikes in licence fees.

In South Oxfordshire, cab companies said they feared going bust after being hit by a 251 per cent hike in their licences.

This month, South Oxfordshire District Council raised the price it charges for a one-year hackney carriage vehicle licence from £75.60 to £265.

Bosses at Vale of White Horse District Council have also increased its annual driving fees for all hackney carriage and private hire vehicle drivers from £90 to £235 – a hike of 161 per cent.

The councils, which share a management team, said the increase was to cover the entire cost of administering the licences, which would fall on taxpayers otherwise.

Jason Atherton, managing director of Auto Taxis, in Radley Road Industrial Estate, Abingdon – which has a fleet of eight hackney carriages and four private hire vehicles – said: “The increases will put me out of business in no time at all. It’s killing me from every single angle. I’ve already had two drivers resign because they cannot afford the fees.

“At the moment there’s no point in me putting a vehicle on the road because it’s too expensive.

“It wouldn’t be so bad if the Vale council let us increase our fees, like South Oxfordshire District Council does, but we have a maximum tariff and we can’t go above that.”

Vale of White Horse District Council claims the cost can be offset by companies if they buy a three-year licence for £295.

But Mr Atherton said: “In this climate, and with these new fees, I don’t know if the business will be around in three years. If we’re not, then we won’t get a refund on the licence.”

David Pryor owns Pryors Taxis, in Mereland Road, Didcot, and has 29 hackney carriages and 16 private hire vehicles.

He said: “We’re very disappointed the council has forced through a 251 per cent increase.

“Other licences issued by the district council are dictated by Government and taxis seem to bear the brunt.

“This will cost us more than £7,000 each year and we may have to consider raising prices in the future.”

Alan Woodward, secretary of the City of Oxford Licensed Taxi Cab Association, said: “These are tough times, particularly with fuel prices being so high, and it seems a strange time to raise the fees by so much.”

Margaret Reed, head of legal and democratic services at SODC and Vale councils, said: “We do not think the fees are unreasonable compared with what other councils charge.

“We received four letters of objection from the taxi trade and we carefully considered these before deciding to adopt the new fees.

“Some companies do not currently charge the maximum tariff and therefore have some scope to increase fares, but we are proposing to do a review of tariffs this year.”

Driving licence (For Hackney carriages and private hire vehicles) – last year/this year

* Vale of White Horse District Council: £90/£235

* Cherwell District Council: £185/£185

* Oxford City Council: £115/£115

* West Oxfordshire District Council: £69/£70.70

* South Oxfordshire District Council: £117/£255. This year the council is also offering a three-year licence for £295

Hackney carriage vehicle licence – last year/this year * Oxford City Council: £351/£351

* Cherwell District Council: £350/£350

* South Oxfordshire District Council: £75.60/£265

* West Oxfordshire District Council: £248/£255.12

* Vale of White Horse District Council: £276/£226