The cost of hailing a taxi in Victoria is likely to increase, after the state’s Essential Services Commission recommended a price rise.

The commission released its draft decision on the 2024 taxi review on Wednesday.

The proposal to recommend a fare increase of 5.7 per cent is primarily driven by the 3.75 per cent increase in the minimum wage announced by the Fair Work Commission and the increase in vehicle and insurance costs since the last review in 2022.

It will increase the cost of a three kilometre trip by 84 cents and add $3.22 to a trip from the Melbourne CBD to the airport at Tullamarine.

The commission also recommends keeping the maximum surcharge steady at four per cent for payments made by credit or debit card, and six per cent for charge cards like Cabcharge.

The draft decision covers trips starting in metropolitan Melbourne, Frankston, Dandenong, the Mornington Peninsula, Geelong, Ballarat and Bendigo.

It does not cover rideshare operators or pre-booked fares.

The draft is open for consultation until July 12 and the commission will release its final decision in September.

Source: AAP