Shanghai's gas, diesel oil prices rise again

(25 August 2000) The price per liter of No. 90 gasoline exceeded three renminbi (US$0.36) for the first time in Shanghai on Aug. 17.

Based on this months median base price set by the State Development Planning Commission (SDPC), No. 90 gasolines retail price increased 7.45 percent from Rmb 2.82 (US$3.43) to Rmb 3.03 (US$3.63), according to the Aug. 17 Xinwen Chenbao (Shanghai Morning Post).

The price rise is a further injury to the Municipal Public Transportation Co. Prior to the earlier price rise last November, the company made a monthly profit of Rmb 760,000 (US$91,000). Now its profit has tumbled to Rmb 60,000 (US$7,000).

The Dazong Public Transportation Co. also said that its profits have dropped by more than Rmb 100 million (US$12 million) due to gas price rises during the first six months of this year.

The public transportation sector hopes that the government will implement some preferential policies in the near future.

The higher prices have affected the taxi sector less because many cabs in Shanghai have been converted to run on liquefied petroleum gas (LPG), the article said.

According to a source from the Quality Supervision Department of Qiangsheng Taxi Co., since 80 percent of the companys cars use LPG, the company will not be hurt by the price rises. But for cabs that are still fueled by gasoline, the company will have to subsidize the drivers.

The government should readjust the price structure in the transportation sector to alleviate drivers financial burdens, the source said.

http://www.chinaonline.com/topstories/000825/1/C00081707.asp

-- Martin Thompson (mthom1927@aol.com), August 26, 2000