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Taxi fares to reflect oil prices
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SHANGHAI will raise taxi fares in the second quarter this year. The new fares will be linked to the changes in oil prices in the future.
“We have made adjustments to the fare raise plan after collecting suggestions at a public hearing last month,” Sun Jianping, chief of Shanghai Transport Commission, said yesterday.
“It will be implemented in the first half of the year once it is approved by the city government,” he said.
Sun said the commission had been working on a format to link taxi fares with the oil price after some participants questioned why the 1-yuan fuel surcharge, which is included in the flag-down fare, was never adjusted given 13 consecutive trims in fuel prices since last summer. He said a detailed plan will be unveiled in the second quarter of the year.
Sun also said the commission will pick one or two taxi companies to experiment with a more market-oriented managing mode in the near future.
Taxis are conceptualized as “a supplement for public transportation,” in Shanghai, and the companies have been receiving preferential policies from transport authority, ensuring a company’s annual net profit by collecting car rents from cabbies. Taxi drivers have been forced to work long hours with poor incomes which has affected service quality over the years.
“The operative mode for the taxi companies must chang, and the government should not serve as a ‘nanny’ for them. They have to face the competition from the market,” Sun added.
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