The Beijing
municipal authorities have raised pump prices by up to 4 percent to cover the cost of
cleaner fuel.
From Tuesday,
gasoline prices in Beijing have gone up by 200 yuan ($29.18) per ton, or more than 2 percent, with the quantum of the increase depending on fuel quality.
For example,
gasoline 93, the most
commonly used, now sells for 6.37 yuan (93 US cents) per liter, up 0.17 yuan from Monday. Gasoline 97 sells at 6.78 yuan per liter, up from 6.60 yuan.
Diesel pump prices rose 290 yuan per ton, around 4 percent.
The revisions are to help cover the cost of providing the city with
cleaner but more expensive Euro-IV standard fuel, the Beijing
municipalcommission of development and reform said in a notice posted on its website (www.bjpc.gov.cn).
It promised to subsidize the agriculture, forestry, mass
transit and taxi sectors to cushion the
impact of higher prices.
Since the
adoption of the Euro IV standards in the capital, there has been a
notable improvement in air quality, the
municipal government said.
The clearer skies during the Olympic Games were so popular with the city's
increasingly affluent and environmentally-aware residents that officials
decided to roll out a permanent car control scheme.
They also aim to boost public transport and limit the number of new vehicles that hit clogged streets each year.
"Primarily, the price rise compensates the cost to the oil companies, but it also sends a strong message to private car owners: To burn clean oil for your private car in Beijing, you need to pay more," Yang Fuqiang, chief representative of the US-based Energy Foundation in Beijing, told China Daily.
Private car owners, however, seem to be caught in a dilemma as they began to feel the pressure from the price they pay for
cleaner air.
"I have been using
gasoline 93 and I have to pay an extra 50 yuan ($7) each month because of the price hike. And
taking into account the fact that I cannot drive my car one day a week, I don't think it's worthwhile to drive to work," said Liu Min, who drives to work every day.
But some said they were unaffected by the price increases.
"The increase is
relatively easy to absorb for small-car owners like me," said Tian Xing, a 23-year-old.
Experts said car owners should brace for more fuel price rises.
The Beijing increases come on top of a nationwide hike in June of nearly 20 percent but it is not the first time residents of the capital have had to deal with fuel prices rising faster than for their compatriots.
In a nationwide hike in March 2006, Beijing's prices rose more than the national average.
The National Development and Reform Commission, the country's top economic planner, explained then that it was more expensive to
refine Euro-III standard
gasoline for the capital than the less-
cleaner fuel used elsewhere in China.
Before the Olympics, Beijing was again told to improve fuel standards and supply the less polluting Euro-IV.
Domestic fuel prices have
roughly doubled since early 2003, but they have lagged global markets, forcing the country's energy majors Sinopec and PetroChina to shoulder losses on sales of
refined fuel.
The authorities have promised to
eventually let the market set prices to promote more
frugal use of energy and
cleaner generation, but have been
reluctant to act as they battled inflation.
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