The booming eastern Chinese province of Zhejiang has ordered a rise in taxi fares in cities and counties with underpriced cabs following a wave of strikes by drivers demanding higher wages, state news agency Xinhua said on Friday.

Fares should be increased in cities and counties where taxi fares are relatively low, the report said, citing a government statement. Local governments should adjust taxi fares in accordance with gasoline price changes.

The provincial authorities also suggested that local governments cut business costs for taxi drivers and provide them subsidies, Xinhua added.

Taxi drivers in Zhejiang's scenic provincial capital Hangzhou went on a three-day strike at the start of August. The brief strike then spread to several other parts of the province.

Taxi drivers in Hangzhou said they make about 500 yuan ($78) a day, but pay out nearly 80 percent of that in fuel and vehicle rental fees.

A series of similar protests by taxi drivers have hit other cities across the nation, highlighting mounting frustration among migrant workers who make up a growing share of the country's workforce.

China's consumer price index hit a three-year peak of 6.5 percent in July, with leaders in Beijing saying that fighting inflation was their policy priority.

The country's 150 million or so rural migrant workers have gained better wages and treatment in recent years, but the gap between them and established urban residents remains wide, fuelling anger about discrimination and ill-treatment. ($1 = 6.390 yuan)

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