A late night black cab ride home has risen to £14.13, Transport for London has announced.

Whilst drivers have had to weather a near 20% increase in insurance costs, the fare increase of 2.3% is the lowest for six years. Earlier this week, petrol prices rose to an average of £1.20 a litre, the highest on record.

The new higher fare comes into affect immediately - without the increase, to travel six miles in the capital cost between £17 and £33, depending on the time of day and how long the journey takes.

A TfL spokesman said:

"The fare rise is designed to provide a balance between maintaining income levels for drivers, who face disproportionately higher costs in order to work than average Londoners, whilst ensuring passengers still get a fair price for the high quality and unique service provided by the Capital's taxi drivers."

Mayor Boris Johnson, said:

"The capital is blessed with wonderful cabbies and we've deliberated long and hard to come up with an increase we think is fair to everyone during these tough economic times."

Bob Oddy, general secretary of the Licensed Taxi Drivers' Association welcomed the "small but important increase".

£50 Golden fares

A new Friday/Saturday night pre-pay  "Golden Fares" scheme will start in autumn will see the cost of a taxi from central London to elsewhere in the capital rise to up to £50.

Minimum rates will start at £20 for up to three miles and will rise to £30 for seven-mile trips. Ten-mile journeys will cost £40, while journeys up to 12 miles will cost £50.