Development and Reform Commission: Beijing and other seven provinces and cities will not adjust the price of passenger taxis for the time being

     

    [Content overview]Since November 1st, the ex-factory price of domestic gasoline and diesel has increased by 500 yuan per ton respectively, which has a great impact on the transportation industry. According to the characteristics of different transportation industries and local actual conditions, local price authorities have actively studied and taken measures to timely channel the impact of refined oil price adjustment.


    China News Service, November 15th, according to the website of the National Development and Reform Commission, since November 1st, the ex-factory prices of domestic gasoline and diesel have increased by 500 yuan per ton, which has a great impact on the transportation industry. According to the characteristics of different transportation industries and local actual conditions, local price authorities have actively studied and taken measures to timely ease the impact of refined oil price adjustment.


    First, road passenger transportation prices


    Nine provinces and municipalities, including Hebei, Shanghai, Zhejiang, Anhui, Fujian, Jiangxi, Hunan, Guizhou and Shaanxi, have taken measures to reduce prices. Among them, Guizhou has increased the fuel surcharge standard by 0.004 yuan per person-kilometer, Hunan has increased the fuel surcharge standard by 0.5 yuan per person-kilometer, Fujian has introduced a fuel surcharge of 0.01 yuan per person-kilometer, and Shaanxi has introduced a fuel surcharge of 1 yuan per person-kilometer. Hebei, Shanghai, Zhejiang, Anhui and Jiangxi have issued documents or according to the existing oil transportation linkage mechanism, allowing cities or transportation enterprises to appropriately adjust the road passenger transportation price within the floating range of the government’s benchmark price according to the actual situation.


    Ten provinces, autonomous regions and municipalities directly under the Central Government, including Inner Mongolia, Jilin, Jiangsu, Shandong, Henan, Hainan, Chongqing, Yunnan, Gansu and Xinjiang, plan to adopt price-plus measures. Among them, Yunnan plans to implement a fuel surcharge plan on November 23. Shandong, Henan, Hainan, Chongqing and Gansu plan to study and approve the collection of fuel surcharges. Jilin and Inner Mongolia plan to issue documents requiring all cities and states to adjust freight rates or introduce fuel surcharge plans according to the actual situation in accordance with the established linkage plan. Some regions in Jiangsu and Xinjiang consider choosing an opportunity to increase freight rates.


    Six provinces and municipalities including Tianjin, Shanxi, Heilongjiang, Hubei, Sichuan and Qinghai have explicitly not adjusted freight rates this time. Among them, Heilongjiang, Hubei and Sichuan have introduced fuel additions to passenger fares last year, which have eased the pressure of rising oil prices to a certain extent, and will not increase fares this time. Tianjin, Shanxi and Qinghai also do not plan to adjust road passenger fares for the time being.


    Due to the intense competition in road passenger transportation in Liaoning and Guangdong provinces, enterprises are concerned that the increase in fares will affect the passenger source, so they do not recommend adjusting fares. At present, road passenger fares are relatively stable, and the price authorities are strengthening market freight monitoring. Whether to increase fuel surcharges is still being studied.


    The price of passenger transport in Tibet and Ningxia is regulated by the market, and it is understood that passenger transport companies plan to increase fares by 10-15%.


    The fares set by the provinces opposite Beijing’s highway passenger transportation will be implemented in accordance with the policies determined by the relevant provinces.


    Taxi fare


    Six provinces including Hebei, Anhui, Fujian, Henan, Guangdong and Guizhou have formulated measures to reduce the price of refined oil. Documents are being drafted or have been issued to allow cities to raise taxi prices, raise the starting price or charge fuel surcharges according to the linkage mechanism of oil transportation prices to ease the contradiction between refined oil prices. The Xiamen Price Bureau of Fujian has reported the plan to collect fuel surcharges to the municipal government, waiting for approval.


    Shanxi, Inner Mongolia, Heilongjiang, Shanghai, Zhejiang, Shandong, Hubei, Chongqing, Sichuan, Yunnan, Shaanxi, Gansu, Qinghai and other 13 provinces, autonomous regions and municipalities directly under the Central Government plan to introduce price-matching measures. Among them, Inner Mongolia, Heilongjiang, Shandong, Hubei, Yunnan, Gansu, Qinghai and other places plan to require all localities to adjust freight rates or charge fuel surcharges in the form of easing conflicting prices of taxi freight rates in accordance with existing policies and local conditions. The specific issue of taxi price adjustment is decided by the localities. Some cities in Zhejiang plan to adjust taxi freight rates or introduce fuel surcharges in the near future. Shanghai is formulating measures and studying and calculating the linkage plan in accordance with the established linkage plan. Sichuan and Shaanxi plan to uniformly charge taxis for fuel surcharges after adjusting natural gas prices at the end of the year or early next year. Shanxi province plans to start a linkage mechanism for taxi fuel prices in 2008. Chongqing is observing market reactions and studying freight rate reform plans.


    The prices of passenger taxis and Shanghai freight taxis in seven provinces, autonomous regions and municipalities directly under the Central Government, including Beijing, Tianjin, Hunan, Guangxi, Hainan, Tibet and Ningxia, will not be adjusted this time. Among them, passenger taxis in Beijing, Tianjin, Hainan and Ningxia and Shanghai freight taxis will not be adjusted for the time being considering the market’s affordability. Hunan and Guangxi have introduced fuel surcharges for taxis in 2006. This time, the existing fuel surcharge plan will be implemented, and no additional fuel surcharges will be charged. Tibet has introduced a measure to reduce road maintenance fees by 30 yuan per month for taxis in the second two months of this year, without adjusting the freight rate.


    Liaoning, Jilin, Jiangsu, Jiangxi, Xinjiang and other five provinces and autonomous regions reported that taxi drivers are currently calm, and the price authorities plan to strengthen monitoring and decide on further measures after observing the market.


    III. Urban public transportation and rural public transportation prices


    In strict accordance with relevant state regulations, all localities will distribute state subsidies for urban public transportation and rural public transportation to relevant business units to make up for the impact of rising refined oil products on cost increases and maintain the stability of urban public transportation and rural public transportation prices.


    IV. Local railway freight rates


    Hunan Province has adjusted local railway freight rates according to the national railway practice.


    Local railway enterprises in Hebei, Guangdong, Guangxi and other provinces and autonomous regions have reported that they have been greatly affected by the rise in oil prices, and require appropriate increases in local railway freight rates in accordance with the national railway practice.


    V. Road freight and water freight prices


    Road freight and water freight rates have been subject to market-adjusted prices, and the price level is mainly determined by market supply and demand. However, in the long run, if the price of refined oil rises sharply or remains high for a long time, it is difficult for operating companies to digest the cost increase factors, and they will still pass the burden downstream by increasing freight rates. At present, the freight rates of some road freight lines in Zhejiang have risen.


    VI. Financial subsidies


    Local price authorities have actively cooperated with relevant departments to implement financial subsidy measures. At present, central financial subsidies in Tianjin, Heilongjiang, Jiangxi, Guangdong, Yunnan, Gansu, Ningxia, Qinghai, Xinjiang and other places have been in place. All localities have started to formulate subsidy distribution plans or have allocated subsidies to industry authorities. All departments have actively implemented subsidy distribution work.


    In addition to providing financial subsidies for urban public transportation and rural passenger transportation according to regulations, Beijing, Tianjin, Shanghai, Anhui, Fujian, Hubei, Ningxia, Qinghai and other places have also introduced subsidy measures for taxis. Among them, Beijing requires the government, enterprises and drivers to jointly bear the impact of the rise in oil prices in a ratio of 4:4:2, and the government and enterprises will jointly give drivers a monthly subsidy of 110 yuan. Before the implementation of the linkage mechanism in Shanghai, the government and enterprises will give temporary subsidies to taxi drivers respectively. Anhui Provincial Finance provided 11 million yuan to subsidize taxis. Ningxia gave a monthly government subsidy of 246 yuan per taxi. Fujian, Hubei and Qinghai asked cities and counties to give temporary subsidies to taxis. Tianjin’s finance department is calculating the amount of subsidies and will issue them before the end of the year.


    VII. Main problems existing


    At present, the main problems encountered by local price authorities in guiding freight contradictions are:


    For example, Guangzhou and other regions reflect that taxi prices are already relatively high, and it is easy to lose taxi passengers and increase drivers’ operational difficulties by adjusting taxi transportation prices or increasing fuel surcharges. For example, some regions plan to channel the impact of rising oil prices on road passenger transportation within the floating range of government-guided prices, but due to intense market competition, the actual fare level is difficult to increase, and operators bear all the impact of rising oil prices.


    The second is that the amount of subsidies for rural road and rural waterway passenger transportation is insufficient. Some places report that rural road and waterway passenger transportation service targets are basically farmers, and their affordability is weak. It is difficult to channel the cost increase caused by the increase in fuel prices through raising fares. The state also requires this part of the freight price to remain stable. However, the central government only subsidizes 50% of the cost increase. It is very difficult to raise and implement local financial matching subsidies, and operators are facing difficulties. The operators of inter-island waterway passenger transportation in Zhejiang Province have put forward price adjustment requirements to the government.


    Third, the increase in the price of refined oil has increased the difficulty of stabilizing the Spring Festival fares. During the 2007 Spring Festival travel period, measures were introduced that did not achieve good results in road passenger fares, which were widely welcomed by all walks of life. After the adjustment of refined oil prices, operator costs have generally increased, and it is difficult for Spring Festival fares in 2008 to remain at the 2007 level.


    In response to the above-mentioned problems, the price authorities at all levels should continue to take into account the actual local situation, under the unified leadership of the local party committee and government, work closely with relevant departments, and take comprehensive measures to reduce the burden on operators, resolve the impact of rising refined oil prices on the transportation industry, strictly control the increase in transportation prices, and maintain industry and social stability.


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Editor in charge: Liu Li