Taxi companies are increasing fares in east Devon by 20%.
Operators have also been given permission to alter the times when higher rates can be charged.
The last fare rise was three years ago when the district's tariff was the 14th most expensive fare in England. It is now down to 166th.
Operators said fares had fallen behind the county's average by 46p for every two miles. The rise was approved by East Devon District Council.
The licensing enforcement committee said the 20% rise would be on the basic meter fare.
The council's decision will now be advertised so members of the public can comment.
If objections are received, the decision could be reviewed.
In a statement, the council said the figures agreed were the upper limit of what could be charged and were necessarily the actual charges operators will use.
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