"I will try to use taxis as little as possible," said Li Guang, 27, an editor at a local newspaper. "I can find alternatives, like the subway, bus or bike."

Starting on Saturday, the price per kilometre after four kilometres base rose from 1.6 yuan (20 US cents) to 2 yuan (25 US cents).

For some, like Wang Ji, an employee of an outdoor activity centre, the impact will be less noticeable.

"I will not be affected by the new fares, as my company reimburses office-hour rides.

"But I would think twice about taking a taxi if my company stops fully reimbursing fares."

However, others said the price hike would have no impact on their daily life. Julia Grindell, magazine editor of the British Chamber of Commerce is one of them.

"Taxis help me much to organize my work and appointments. They are important to me so I cannot imagine my life without the tool," she said.

Two days after the fare increase, more than 4,000 taxis in the capital have been labelled with the "2 yuan" tags, according to a source with the Beijing Transportation Management Bureau.

Due to complications in updating all electronic meters and price tags attached to the rear windows, it will take a month before all 63,600 taxis in the city charge the full fare.

Some cab drivers were unhappy with the rise, saying higher prices meant fewer passengers.

"I have to compete with stylish Hyundais for customers. The fare hike means I will lose customers," complained Zhang Guojie, 33, a driver of a 1.4 litre Citroen.

"When my car gets replaced with a new 1.8 litre-emission model, I believe more people may accept the price rise."

The price hike, as the Beijing Municipal Commission of Development and Reform explained, is a direct result of continuous oil price rises.

During April 26's hearing on the issue, 56 per cent of representatives voted for the adoption of the price hike amid heated opposition.

By Liu Weifeng