The Beijing municipal government has decided to subsidize taxi
drivers an additional 110 yuan (US$14.6) a month, following last
week's 10-percent price hike for gasoline, diesel oil and aviation
kerosene.
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Starting from this month, the additional subsidy will be paid to
all Beijing taxi drivers to offset their rising operation costs,
the Beijing government said in a statement on Saturday.
The city's fuel subsidy to taxi drivers, in place since 2005,
has therefore increased to 780 yuan per month, including 520 yuan
paid by taxi companies and 260 yuan from the government.
The municipal development and reform commission said it does not
plan to raise taxi fares before the gasoline price hits 6.1 yuan
per liter.
Following the recent price hike, effective as of November 1, the
unit price for #93 gasoline that fuels most of Beijing's taxies and
private cars sells for 5.34 yuan per liter, compared with 4.9 yuan
per liter before.
The additional subsidy, though not enough to offset all the
extra running costs, has been welcomed by Beijing taxi drivers.
Wang, a driver with Beijing Wanquansi Taxi Co, said he would
have to pay at least an additional 400 yuan for gasoline now.
"Still, we're happy the government has offered to help ease some of
our burdens."
Beijing has around 67,000 taxies.
(Xinhua News Agency November 11, 2007)