TAXI drivers in Glasgow insist fares must rise by more than 13% to meet the spiralling cost of running their cabs.
But council bosses say the fare hike in the city should be limited to less than 4%.
A union representing 135 taxi operators and 50 individual drivers claims such a low increase will force some firms out of business.
Members of the licensing committee were meeting today to decide on the new cost of taxi fares in the city.
They considered a letter from the Unite union asking for a "significant" rise in order to maintain the level and quality of the service.
It said: "The Glasgow taxi trade has been struggling.
"There are a number of reasons for this – the economic downturn, loss of major contracts, a low tariff and the fuel and VAT increases.
"In almost every aspect, the costs involved with a taxi business have risen and as a result, most operators struggle to make their business viable."
Ken Gillespie of Unite said drivers are having to cope with an increase in running costs, a £3000 rise in the cost of a new taxi, a rise in fuel prices and a jump of up to 40% in insurance costs.
He added: "We have to generate money to keep the trade vibrant by reinvesting in vehicles as well as covering repairs.
"But the 3.6% rise recommended by the council is going to make it hard for taxi drivers to make a living.
"There are drivers who are considering leaving the trade and owners who can't get drivers for their cars.
"Guys are deciding to sell their vehicles and business but nobody wants to buy them.
"The trade will be in a downward trend if the council cannot help us by understanding our plight."
A law firm acting on behalf of Glasgow Taxis has written to councillors asking them to review the formula for setting increases in taxi fares.