Taxi fares in NSW won't be increased for another year, but they will then have to go up to cover the rising costs of operating a cab.

"Holding fares at their current level is only sustainable for 12 months at the most, as taxi costs including fuel, maintenance and insurance, continue to rise," Taxi council chief Roy Wakelin-King said.

"Fares need to be set at a level that balances the needs of customers and the viability and sustainability of owning, operating and driving a cab."

Over the next year, it won't cost anymore and it will be easier to find a ride with an extra 250 cabs soon roaming the streets, Mr Wakelin-King said.

He added that he's "grateful" the government didn't accept recommendations from the state's pricing regulator which would have cut driver's pay despite costs increasing by 2.5 per cent during the past year.

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