Shanghai, February 10 (Gasgoo.com) The Chinese government will subsidize public transportation operators in the country for them to offset the impact of the oil hike, China Daily reported today, citing sources from the Ministry of Transport.
If the price of gasoline rises to over 4,400 yuan ($644) per ton or diesel oil price climbs above 3,870 yuan per ton, the central government will launch the subsidy system; if oil prices fall behind these levels, the subsidy system will be stopped, according to the measures jointly issued by the transportation and finance ministries.
The subsidy scheme will cover urban public transportation, taxi, rural passenger transportation and inter-island and rural water passenger transportation. The subsidy period started from January 1, 2010 and will be paid before June 30.
Previously, oil subsidy was granted by local governments, the report said. Meanwhile, China will be more responsive to the global oil market trend and make timely regulation of its fuel prices in line with the international oil prices.
The Chinese government encourages more use of energy-efficient vehicles and will increase auto trade-in subsidies this year by 200% at most to 18,000 yuan for each car from the previous 6,000 yuan.
