Financial departments recently enacted a fuel price linkage subsidy plan, aiming to ease the burden on industry should there be another fuel price surge.
Recently seven state departments, including the Ministry of Finance, kicked off the country's first refined oil price linkage subsidy mechanism, aiming to assist farmers, the underprivileged, and the public utilities in easing the burden of high fuel prices.
In line with the newly enacted subsidy plan, when the state guideline price of petroleum exceeds 4,400 yuan (US$644.22) per ton and that of diesel exceeds 3,870 yuan (US$566.62) per ton, the mechanism will kick in.
The coverage of the linkage plan extends to state-owned forestry, plant nursery, public transportation, both offshore and freshwater fisheries. Enterprises and individuals involved in these activities will enjoy full subsidies from central finance for the fuel surcharge.
In terms of road passenger transportation in rural areas, waterway passenger transportation and ocean fisheries, central revenue will cover 50 percent of the surcharge when the petroleum price fluctuates between 4,400 yuan (US$644.22) and 5,480 yuan (US$802.34) per ton, and the diesel price between 3,870 yuan (US$566.62) and 5,070 yuan (US$742.31) per ton. When prices exceed the upper limit, central revenue will fully cover the surcharge. In addition, urban taxis in China's eastern provinces will receive 40 percent of the fuel surcharge as a provisional subsidy.
The subsidy for fuel will be issued at the end of April each year.
(China.org.cn by Maverick Chen, April 10, 2009)
