Black cabbies in London have stopped searching for passengers in the capital dues to spiralling fuels costs and are now queuing at cab ranks.

“Extortionate” fuel prices are having a major impact on 10,000 drivers as they run on diesel which has hit record highs on Monday.

Steve McNamara, general secretary of the Licensed Taxi Drivers Association told the PA news agency that the cost of diesel has soared by around 25% since 2020.

“Fuel is the largest part of your daily running costs,” McNamara said.

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“If you’re running costs are up 20-25% it starts to bite.

“What we’re seeing is more cabs looking to park on ranks. They’re trying to avoid cruising around.”

Figures from data firm Experian Catalist show the average cost of a litre of the fuel has reached 161p at UK forecourts.

“We’re actually due something over 10% but there’s no way we would take that in the current economic climate and everybody coming back from the pandemic,” he explained.

“Having said that, we do need to look at whether we’re going to accept a (smaller) increase in view of massively rising (diesel) prices.”

“Having said that, we do need to look at whether we’re going to accept a (smaller) increase in view of massively rising (diesel) prices.”

Rod McKenzie, managing director at trade body the Road Haulage Association said, “If hauliers have to pay more for their fuel, they inevitably have to charge customers more.

“I suspect this will mean prices going up on everything that is delivered by a truck, which is frankly 97% of everything that we get in Britain.”

Profit margins in the industry are around 3%, therefore recent rises in fuel do “have the potential to wipe out that profit,” McKenzie warned.

“Every member I’ve spoken to in the last week has flagged this as the number one critical issue that they are facing in their business.

“I can’t underplay the impact it’s having on daily haulage operations and transport operations in general.”

RAC fuel spokesman Simon Williams warned on Monday that many older motorists will be “struggling to comprehend” the price of petrol going beyond £7 per gallon.

He added, “These hikes are unprecedented and will sadly be hitting both homes and businesses hard.

“It’s therefore vital the Chancellor acts quickly to limit the damage by cutting VAT to at least 15% which would save drivers 6.5p a litre and take the average price of unleaded back under £1.50.”