Taxi drivers in Oxford will be allowed to put up their fares because of the rising costs of fuel.

At a meeting of the Oxford City Council licensing committee on Tuesday, the council, which regulates hackney cab fares, agreed the annual increase.

The move means an extra 40p on an £8 fare. But a controversial plan which could see a further 20p added on to the price of single trip has been shelved.

The City of Oxford Licensed Taxicab Association (Colta) wanted to introduce a trigger system which would kick in should the price of fuel rise dramatically again.

The group requested if the cost of a litre of fuel rose above £1.50 at the main garages used by cabbies across Oxford, then they would be able to automatically charge people a further 20p.

Diesel currently costs an average of £1.10 in Oxford.

If the fuel then dipped in price, the trigger system would work in reverse. But councillors voted against the move, agreeing that it would be better instead to take action when and if a dramatic rise in the cost of fuel occurs.

Deputy city council leader Ed Turner said: "We agreed the annual rise in fares as we always do. But what we have said to drivers is that they should come back to us if fuel ever reaches that price and we will consider a further rise then.

"But if the cost of petrol ever hits that level then we will see if a review of taxi fares is necessary at the time."