Will the fuel subsidy for taxis be canceled by 2021?
1 Answers
Fuel subsidies will still be available in 2021, but they will be gradually reduced. The related expenditures will no longer be linked to fuel consumption and oil prices. For the relevant assessment system, please refer to the "Notice of the General Office of the Ministry of Transport on Matters Related to the Effectiveness Assessment of the Adjustment of Fuel Price Subsidy Policies for Rural Passenger Transport and Taxis." 1. Plan: The current price increase subsidy for rural passenger transport and taxis will be gradually reduced by each province based on the actual implementation in 2014, effective from January 1, 2015. Specifically, the subsidy will be reduced by 15% in 2015, 30% in 2016, 40% in 2017, 50% in 2018, and 60% in 2019. The reduction rate after 2020 will be determined separately, and the related expenditures will no longer be linked to fuel consumption and oil prices. 2. Taxis: The report mentions that taxis, car-sharing vehicles, and ride-hailing vehicles will become the first tier to achieve full electrification, with the earliest phase-out expected in major cities like Beijing and Shanghai by 2020. Cities like Chongqing and Chengdu will become the first to promote new energy vehicles, while traditional fuel vehicles will completely exit the Chinese market by 2030.
