Beijing's Development and Reform Commission is hearing different opinions about a proposed fare hike for the city's fleet of 60,000 taxis.

Beijing Transportation Bureau earlier proposed to the commission a fare increase of 25 percent, rising the cost from 1.6 yuan (about US$20 cents) per kilometer to 2.0 yuan (about US$25 cents).

Chai Xiaozhong, deputy director of Beijing Development and Reform Commission who organized the hearing, said the commission asked for opinions for 25 people representing taxi companies, schools, research institutions, consumer associations and factories. Fourteen of them approved the fare hikes, two gave qualified approval and the others opposed the increases.

The price hike was proposed mainly to offset rising fuel costs and to pay for drivers' social insurance and third-party liability, said Yao Kuo, deputy director of Beijing Transportation Bureau.

Deputy Li Xiying, a taxi driver with Beijing Yinjian Industry Co. Ltd.,said price hikes will provide for better driver benefits and help fund global positioning devices that are being installed in the cabs.

Chen Jianmin, a law professor of prestigious Tsinghua University, said most of the 100 residents and over 40 cab drivers she surveyed are against fare increase.

The majority of the people surveyed by Chen believe fare hikes will very likely drive Beijingers to take black market or unlicensed cabs thereby depriving legitimate tax drivers of income.

Chai said the commission will fully consider the opinions it has heard before making a final decision.

In addition to the set fare increase, the proposal also suggests taxi fares be allowed to "float" as fuel prices change.

Taxi fares in Beijing have remained unchanged for more than five years, while oil prices have increased from 3.2 yuan a litre in late 2000 to today's price of 4.65 yuan.

The government and taxi companies began to give drivers a monthly petrol subsidy of 300 yuan last year to cover the increase in fuel. After oil prices jumped at the end of last month, taxi drivers started to receive an additional monthly subsidy of 150 yuan. If the new fares are approved the drivers will loose these subsidies.

(Xinhua News Agency?April 27, 2006)