The National Taxi Drivers Union (NTDU) has said it will continue to petition local authorities for a 50 cent fuel surcharge to taxi fares, though the extra charge had been ruled out by the commissioner for taxi regulation.
The NTDU called for the introduction of the charge last week to compensate for the rising cost of petrol and diesel.
However, taxi regulator Ger Deering, who is in a position to take responsibility for setting fares from local authorities next month, said he cannot legally apply an extra charge.
Mr Deering said he will review taxi fares nationally, but he must go through a legislative process and cannot "shove 50 cents on" as a stop-gap measure.
He added while 50 cent may seem a reasonable fuel charge on a €20 fare, it would be out of proportion for a €4 journey.
NTDU president Tommy Gorman said yesterday that the union accepted that Mr Deering could not apply the fuel charge, but he said he hoped local authorities would do so before the regulator sets a new national charge.
"The councils could put on the 50 cent charge now, and then he [Mr Deering] could take it off again if he wants to when he sets the new fare, but we need something to tide us over until a new fare is set."
Taxi drivers' fuel expenditure had increased by €1,500-€2,500 annually in the last three years, Mr Gorman said, because of increased oil prices and because drivers had to spend more time "cruising" for fares.
While hauliers or utilities such as electricity companies could put up their rates, to compensate for the cost of oil, taxi drivers did not have that control.
However, Mr Gorman said the increases in costs could no longer be born by the industry.
"I'm hoping that local authorities will look at this suggestion favourably because at the moment we are in a terrible limbo situation."
Dublin City Council and Westmeath County Council had written to him to say they will consider the matter, Mr Gorman said.
Most local authorities will have to wait to make any decision until councillors return to work from summer recess next month.