The government announced Oct. 19 a 7.2 percent hike in Tokyo taxi fares from Dec. 3, increasing the upper limit of the drop fare for the first 2 km from ¥660 to ¥710, to improve drivers' working conditions and help taxi firms cope with surging fuel prices.

It will be the first increase in Tokyo taxi fares since April 1997, when the consumption tax was raised from 3 percent to 5 percent.

The Land, Infrastructure and Transport Ministry also made public Oct. 19 taxi fare hikes of 7.9 percent in Tokyo's suburbs, including the city of Hachioji, and a 7.7 percent rise in Yokohama and Kawasaki.

Similar requests for taxi fare increases have been made across Japan and the ministry has approved hikes in seven prefectures, including Akita, Nagano and Oita. Fare increases in other areas are expected to be endorsed by year's end.