Was the Fuel Subsidy Canceled in 2021?
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2021 still receives fuel subsidies, but the fuel subsidy will gradually decrease, and the related expenditures will no longer be linked to fuel consumption and oil prices. Below are the relevant policies for the 2020 national subsidy for new energy vehicles: 1. More gradual reduction in subsidies: The subsidy standards for 2020-2022 will be reduced by 10%/20%/30% respectively based on the previous year, with public transportation areas seeing reductions of 0%/10%/20%. For passenger vehicles, pure electric models will see a 10% reduction in 2020, while plug-in hybrid models will see a 15% reduction. 2. A three-month transition period is set: from April 23, 2020, to July 22, 2020. During the transition period, vehicles that meet the 2019 standards but not the 2020 standards will receive a 0.5 times subsidy based on the 2019 standards, while those meeting the 2020 technical standards will receive subsidies according to the 2020 standards. 3. Price threshold set (vehicles with "battery swap mode" are exempt): The new subsidy policy stipulates requirements for the pre-subsidy price of new energy passenger vehicles. The price limit for subsidized vehicles will be enforced after the transition period. 4. Fuel cell vehicles: Rewards replace subsidies, shifting from national purchase subsidies to regional demonstration development, moving from broad management to focused efforts. Fuel cell is also one of the policy-supported routes. By the end of 2019, over 6,500 fuel cell vehicles had been promoted domestically, with more than 50 hydrogen refueling stations built. 5. Minimum range continues to increase: For pure electric passenger vehicles, the minimum range for subsidies in 2020 was raised from 250km to 300km. 6. The annual subsidy cap is 2 million vehicles.
