China's central budget will provide public transportation operators with subsidies to offset the impact of a hike in oil prices, the Beijing Times reported Tuesday, citing sources with the Ministry of Transport.
The Ministry of Transport and the Ministry of Finance have issued measures that if the price of gasoline rises to over 4,400 yuan ($644.49
) 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.
Urban public transport, taxi, rural passenger transport and inter-island and rural water passenger transport fall within the subsidy scope. The subsidy period started from January 1, 2010 and will be paid before June 30.
Oil subsidy used to be granted by local governments, the report said.