This means fares could increase would mean a typical journey instead of costing £5.10 would now cost £6.80.
The consultation has been launched following a request from the taxi trade.
They argue that with the current cost of living crisis fare should increase.
Taxi fares in South Staffordshire have not increased since 2010 and currently sits near the bottom of the league table at 336 out of 344 on local authority fares, according to Private Hire and Taxi Monthly.
In 2022 several neighbouring areas increased their taxi fares, a similar journey in Tamworth would cost £7.14 whereas in Stafford and Cannock Chase it would only cost £6.50.
This increase would only apply to hackney carriages as the authority does not have the power to control the fares set by private hire vehicles.
A report submitted to South Staffordshire District Council states: “This is an increase of 33 per cent.
"However, Retail Price Index (RPI) inflation over the same period is 57.7 per cent, meaning that if the fare was to increase at that rate it would be £8.04.
“Engagement and consultation with the trade has been ongoing, with consideration given to inflation, labour shortages in the taxi industry, future anticipated costs, fares set by other authorities”
In April 2022, South Staffordshire District Council delegated its tax licensing function to the Wolverhampton Council this means that they will be leading on the consultation.
Fares are enforced using a taximeter which will need to be recalibrated to the new fares at the proprietors’ expense.
Residents have just 14 days once the consultation period has opened to if they wish to object, if no objections are raised then the new fares will take effect.
However if residents do object then a further meeting of the licensing committee will decide on the future of fares.