SCHENECTADY — The city is considering legislation to allow cab companies to charge extra to cover their escalating fuel costs.

The Common Council’s Public Utilities Committee will discuss the enabling legislation Monday afternoon. The city regulates cab companies, setting fares and issuing licenses.

The proposed legislation would allow cab companies to charge an extra $1 for fuel for fares under $5 and $1.50 extra for fares over $5, provided the price of gas is $4 a gallon or more. If the price drops below that price, the companies can charge 50 cents extra for fares under $5 and $1 extra for fares over $5.

Committee Chairwoman Denise Brucker said the legislation is fair to the cab companies, which have been dealing with rising fuel costs.

Central Brown Taxi General Manager Gary Valenti said the surcharge will help cab companies. Central and a second cab company that operates in the city, Capitaland Taxi, asked the city for the surcharge several months ago.

“We are not looking for a fare increase, just some help,” he said.

He said on average each of his 17 taxis burn up to $145 in fuel per day. The surcharge will go directly to the company, which pays fuel costs for its drivers.

The city last set cab fares in 2001. Central Brown’s fare starts at $3.50 and increases every quarter mile.

Capitaland’s drivers pay for their own fuel, so the drivers would receive the surcharge.

Councilwoman Barbara Blanchard said she believes the surcharge should be incremental, based on distance covered. She called the surcharge regressive in that it adversely affects the poor, who are more likely to use taxis.

Blanchard also said she believes the surcharge will remain in effect permanently.

The city of Albany, for example, instituted a 50-cent surcharge in 2005. Its legislation stated the surcharge would disappear when gas dropped to $2.50 a gallon or less.