Fuel price hike generates concern among motorists

Shanghai, June 20 (Gasgoo.com) Chinese motorists, knowing the price of gasoline was about to be marked up, lined for hours last night at gas stations only to be told they could not be served until the price raise took effect at zero o'clock June 20, prompting scenes of disappointment and anger on the forecourt.

Word spread fast by phone and SMS after news of the price rise leaked out and soon motorists were heading to gas stations to fill their tanks. Government officials stood by at gas stations in Beijing, host of the Summer Olympics in just seven weeks, to ward off any trouble from irate drivers. Some people in big cities such as Beijing and Shanghai are wondering whether they need to forget their new cars and take the subway to work as the cost of driving is too high.

Prices for gasoline and diesel fuel rose abruptly by 1,000 yuan ($145) per ton each effective from midnight on Thursday. The government pledged subsidies to farmers, low-income families and taxi drivers to cushion the crunch. Vehicles delivering vegetables and other fresh produce would be exempt from road and bridge tolls. Taxi drivers were promised subsidies which would not cover higher fuel costs. A Beijing taxi driver for 15 years estimated his fuel bill would increase by over 1,000 yuan a month.

Beijing drivers will also be forced to leave their cars home on alternate days starting July 20 to help ease congestion and reduce pollution during the Olympics and Paralympics. Those affected by the odd-even number plate restrictions will not have to pay road or vehicle taxes for three months, a spokesman said on the city's official website.

Though unpopular with drivers, the fuel price hike would not spark social unrest ahead of the Olympics, because common people don't have cars and will welcome the decision as it hurts the rich. And Chinese people are more able to tolerate price raises today than they were 20 years ago.

The 16.7% increase in gasoline takes the pump rate to about $0.75 a liter, still 25% cheaper than in the United States and about one-third what British motorists pay. Prices of refine oil have doubled since 2003, but crude has more than quadrupled.