Was the fuel subsidy canceled in 2021?
1 Answers
2021 fuel subsidy was not canceled. Below is an introduction to the fuel subsidy: 1. For the urban public transport industry: China's urban road resources are limited, and the rapid growth of vehicles has made urban congestion a major factor affecting residents' quality of life and restricting economic growth. Therefore, the state vigorously develops public transportation. Under this background, a low-fare policy for public transport is implemented to attract residents to take buses. Fuel prices keep rising, while fares remain unchanged. Bus companies can only operate at a loss based on ticket revenue alone and cannot function normally, so the state provides fuel subsidies. 2. For the rural passenger transport industry: Rural passenger transport is similar to urban public transport. The transportation industry is promoting urban-rural integration, and the subsidy methods for rural passenger transport will gradually align with those for urban public transport. 3. For the taxi industry: Document Cai Jian [2009] No. 1008 states: All regions should expedite the improvement of the taxi price linkage mechanism to mitigate the impact of fuel price adjustments on taxi operating profits by adjusting fares or fuel surcharges. Before the price linkage mechanism is perfected, the central government will provide temporary fuel subsidies to taxi operators. Simply put, taxis are profit-oriented and can raise fares to offset the cost burden caused by rising fuel prices. However, to achieve comprehensive regulation of the taxi industry, the state mandates uniform fare-setting by regions. Since this fare system has not yet established a linkage mechanism with fuel prices, temporary subsidies are provided.
