No Taxi Surcharge Adjustments on Shenzhen Taxis Despite a Decrease in Oil Prices
With the recent cut of gas prices in the city, there will be no deductions on fuel surcharges on taxi fares in Shenzhen. Taxi surcharges in the city are still the highest in the country. In the city’s fuel surcharge pricing program mechanism said that fuel prices are not low enough to allow any adjustments.
Even if fuel prices fall low enough, it takes a roughly two-month observation period to adjust the fuel surcharges. Current fuel surcharges range from 2 to 3 yuan for red taxis and 1 to 2 yuan for green taxis. Under the pricing mechanism, changes will not take effect for two two months even if gas prices fall to 7 yuan per liter.
Retail prices for gasoline were recently cut, but have a limited impact on the city’s taxi service since the price cuts are not large enough and gas prices will increase again in a few weeks or months. Taxi drivers welcome the price cuts since it will allow them to save 350 yuan a month.
There are more than 14,000 taxis running in Shenzhen and competition is high, even with the fuel price cuts it won’t relieve the pressure in the city’s taxi industry.