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Cabbies to get subsidies for rising fuel cost

To ease the impact of rising fuel prices Shanghai authorities said they will subsidize taxi drivers to keep the fuel surcharge unchanged.

China raised gasoline and diesel retail prices by 600 yuan per ton last night, causing long queues at gas stations across the country before midnight.

The price hike sparked public criticism and fueled expectations that taxi fares will rise accordingly.

The Shanghai government will provide fuel subsidies once the retail gasoline price surpasses 7.22 yuan per liter, according to the Municipal Transport and Port Authority.

At Shanghai pumps, the ceiling price for 93-octane gasoline is now 8.27 yuan per liter, up from 7.79 yuan; 97-octane gasoline is now 8.80 yuan from 8.29 yuan; and zero-grade diesel costs 8.19 yuan, up from 7.67 yuan. Pump rates vary across the nation.

Shanghai officials said the fuel surcharge for taxis will remain at 1 yuan.

The city raised taxi fares last July, charging customers additional 2 yuan per trip to cope with rising fuel prices.

The flag-down fare is now 13 yuan, from 12 yuan before, and a one-yuan fuel surcharge is applied per trip.


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