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Shenzhen Shortens Fuel Surcharges Oberservation Period

Shenzhen Shortens Fuel Surcharges Oberservation PeriodShenzhen is canceling the city’s two month observation period that was planned for the adjustments of taxi fuel surcharges that can now be adjusted in just five days after being announced. Officials say that the decrease in the notice is to better align with the fuel price changes across the country.

But a majority of drivers thinks that the best way to solve the issue is for the government to give fuel subsidies directly to taxi companies. The pricing systems for taxis were made in 2009 and haven’t been changed since. and by creating a two month observation system the city hoped to keep the fuel surcharges stable, but because of the current situations wherein fuel prices adjusts frequently the  surcharges cannot keep up in the adjustment. As of July, China has adjusted fuel prices 16 times already but surcharges were adjusted 4 times.

The transportation department is now proposing adjustments and has already submitted the proposal to the commission for review. Local taxi drivers have welcome the cancellation of the observation period, still some are uneasily that these changes will somehow affect their businesses.



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