Bejing taxi fares to rise 25%
By Zhu Zhe (China Daily)
Updated: 2006-04-20 09:48
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Taxi drivers push cars by
themselves along the street for saving oil while waiting for passengers in
Beijing, April 19, 2006. [newsphoto]
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The government and taxi
companies started to give drivers a monthly petrol subsidy of 300 yuan (US$37)
last year to cover the cost increase. And after oil prices had another jump at
the end of last month, taxi drivers have started to have an additional monthly
subsidy of 150 yuan (US$18).
But the proposal said the subsidies would not be available if the fare
re-adjustment came into effect.
While taxi companies are hailing the possible fare rise, China Daily's random
survey yesterday on six taxi drivers from six different companies showed that
none of them would be happy with the increase.
"A price rise will mean a fall in customers," said Han Baozhu with the Yuyang
Passenger Transport Company. "I figure I will lose at least 20 per cent of my
customers."
He said a cut in drivers' management fees that have to be given to the taxi
companies would be a better way to offset the cost increase. He said his company
collects a monthly management fee of 5,800 yuan (US$716) per car, while new taxi
only costs 90,000 yuan (US$11,100).
"They need only 15 months to take back the cost, but each car can be used for
eight years."
A telephone survey by China's Social Survey Institute on 200 Beijing
residents shows that 72 per cent of them are against the possible fare rise.
About 68 per cent of the respondents considered 1.2 yuan (15 US cents) per
kilometre rate to be a reasonable price.
Wang Meng, an IT company employee in Beijing, said she would consider
reducing her use of taxis if the fares increase. "If taxi fares rise, I may not
travel by taxi as often as I do, or I will choose taxis without licences which
charge much more cheaply."
It is estimated that there are at least 70,000 unlicensed taxis running in
the city. Drivers with regular companies worry that the fare rise may push more
passengers into illegal taxis.
(China Daily 04/20/2006 page3)
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