BEIJING More than 1,000 taxi drivers are on strike in central China's Hubei province to protest a new fee that will cut their income by up to one-third, local officials and a rights group as said Sunday.

As the streets of Hubei's Jingzhou city emptied of taxis and officials showed no signs of softening their stance, the drivers were considering escalating the conflict, possibly by paralyzing the remaining traffic in the city.

The standoff began when the Jingzhou government announced that the city's 1,588 taxi drivers would have to pay 30,000 yuan ($3,610) for a five-year license, an official with the Jingzhou petition bureau told AFP by telephone.