China offers subsidy for hybrid car users

China will provide special subsidy to companies and institutions that use hybrid vehicles like the electric and fuel cell cars, the finance ministry said recently.

The ministry said the scheme in 11 cities, including Beijing and Shanghai, would offset the extra fuel costs companies incur on ordinary vehicles. The scheme will also promote production of hybrid vehicles.

Companies and government departments, including the public transport services, are encouraged to use hybrid cars that would also help curb pollution, the ministry said in a statement.

The scheme is however not yet extended to private car users.

The ministry noted that due to high price tag on hybrid vehicles, such cars have been out of reach of the common people.