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Plan introduced to address oil price hikes
By Guo Xiaohong and Li Jingrong (China.org.cn )
Updated: 2006-04-04 14:32 To cultivate an energy-saving society thereby promoting economic growth. In this respect, the challenge the government faces is addressing the negative impacts domestic oil shortages have on economic and social development. On the other hand, resource wastage has become an increasingly serious problem. The vehicles on China‘s roads, for example, consume 20 percent more fuel than in developed countries; To give full play to basic functions of market-driven resource allocation so as to improve the market economy system. Key measures implemented The NDRC‘s decision to regulate domestic oil prices was based on the following considerations: to improve energy efficiency and better utilize domestic and imported supplies to meet the demands of economic development; to keep in mind the interests of the various industries involved; and to unequivocally push forward pricing reform. One of the measures implemented is a subsidy system for certain sections of the community and public service sectors. Further, fees or levies will be collected from oil producers who sell refined oil domestically. The recipients of the subsidies will include farmers, fishermen and fishing firms, state-owned forestry enterprises, and urban public transportation firms. For rural passenger shipping operators, the government will also adjust transportation charges, thereby passing on price increases to customers. Similarly, travel charges and fuel surcharges will be levied for air, railway and road transportation. Taxi drivers in the cities have been the hardest hit by continually increasing oil prices. The NDRC has urged local governments to lighten their burdens by implementing measures including regulating rental fees collected by taxi companies and cracking down on unlicensed taxi operators. (For more biz stories, please visit Industries)
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