Eyewatering parking charges are a certainty when driving into city centres on traffic-choked streets. Yet even that guarantee is about to disappear with budget airline-style pricing at car parks.

Although some drivers may end up paying as little as £3.99 a day under the scheme, others will pay eight times as much, with the price varying according to the number of empty spaces on arrival.

Westminster City Council, in Central London, which makes more money from parking than any other local authority in England and Wales, is to test “easyJet-style parking” in an effort to boost its revenue.

The cost of a space will be displayed on a digital screen at the entrance of the car park and linked to a vehicle counter. Motorists who arrive when the car park is virtually empty will pay only 50p an hour or £3.99 for the whole day but those who turn up when it is almost full will pay £4 an hour or £33 for the day. However, during busy periods the price could change every few minutes.

Currently drivers can expect to pay, depending on which car park they use, £8-£9 for two hours, although the maximum is still £33 for the day.

Since the introduction of the congestion charge four years ago, Westminster Council has suffered a 12 per cent drop in the number of people using its car parks and lost revenue. Retailers have also complained that customers have been deterred by the £8 daily congestion charge. The council hopes that variable pricing will attract 30 per cent more drivers to its car parks.

Danny Chalkley, cabinet member for economic development and transport on the Conservative-controlled council, said that the authority had received advice from easyJet about its new pricing regime, with Alastair Gilchrist, the director of parking, a former easyJet executive.

Mr Chalkley said: “We know that many drivers in London are put off by expensive parking charges. Now they will be able to park much more cheaply on a first come, first served basis.

“They won’t be able to predict what they will pay before they drive in but we think it will lead to more people taking the chance that they will get a very good deal.”He said that the charging system would favour shoppers rather than commuters.

Transport 2000, the green lobby group, said that the idea may undermine the benefits of the congestion charge, which has resulted in 20 per cent fewer cars entering the charging zone. Stephen Joseph, its director, said: “The last thing Westminster and the West End need is a big increase in cars attracted by heavily discounted parking fees. “This is not even in motorists’ interests because it will lead to great uncertainty about how much their trip will cost them. It could also result in perverse behaviour, such as people driving around in circles waiting to see if the price drops.”

Westminster Council made a profit of £33.3 million from parking charges and penalties last year and plans to make £35.2 million this year. All the profit is invested in transport schemes, including a discounted taxi service for the elderly. The council plans to test variable pricing at its Knightsbridge car park for six months, starting next year. If successful, the scheme will be extended to all 16 of its car parks, which have a total of 5,000 spaces.

Earlier this year Westminster announced that parking meters would be removed and replaced by a cashless mobile phone payment system. Drivers can send a text message to pay for extra time if they are running late.

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