BIZCHINA / Top Biz News
Oil price cut, but not taxi fares
(Shanghai Daily)
Updated: 2007-01-15 14:15
Authorities won't cut taxi fares in Beijing, Shanghai and Guangzhou
although China has just cut the retail and wholesale prices of oil.
China's Development and Reform Commission announced it cut the price of
gasoline by 220 yuan (US$28) per ton and cut the aviation fuel price by
90 yuan per ton from yesterday.
An employee works at a gas station in Shanghai January 14, 2007. China
has cut the retail price of gasoline for the first time in nearly 19
months, a surprise populist move that will hit refiners in the short-term
but could set the stage for more market-based prices, analysts say.
[Reuters]
Shanghai authority said the city won't reduce taxi fares soon because the
price should be adjusted on a yearly basis after a new mechanism took
effect in May, which allows taxi fares to float with fuel prices to
counter the influence of rising gas prices on the taxi industry and
drivers.
From May 11, the city raised the base fee, which covers the first three
kilometers of a trip, to 11 yuan from 10 yuan during the day, and the
price after 11pm to 14 yuan from 13 yuan. The price of each additional
kilometer was also increased from 2 yuan to 2.10 yuan.
Beijing's taxi fare won't be decreased because its mechanism stipulates
only when gasoline prices drop to 4.26 yuan per liter will the price be
cut 0.20 yuan per kilometer, while the current price hasn't reached that
mark.
In Guangdong , the 1-yuan surcharge fee won't be canceled until the
gasoline price drops to 3.70 yuan per liter. Some drivers said the
pricing department should cut the price by 0.50 yuan per liter rather
than the current 0.22 yuan.
(For more biz stories, please visit Industry Updates)
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