For Xu Wenhua, a trusty bicycle is looking more and more attractive than the petrol-guzzling Citroen he now owns.
"I should have bought an electrical bicycle, not a car," lamented Xu, who lives in Changping, a suburban district some 40 kilometers north of downtown Beijing.
Currently, there is a saying in Beijing: "You may afford buying a car, but you may not afford the cost of using it."
Xu couldn't agree more. To his dismay, fuel prices had kept soaring in China since he bought a car early this year. The steep costs had come in response to skyrocketing oil prices in the world market, once exceeding an all-time US$70 per barrel in late August.
Now, No 93 petrol, the most popular fuel grade in Beijing, was sold at 4.26 yuan (approximately 8.11 yuan against the dollar) per litre in early August.
"My heart falls the most when I hear of news that the fuel prices have risen again," said Xu, 35, who works at a company in Qianmen, a business district in the heart of the Chinese capital.
The soaring fuel prices have dampened potential car buyers' enthusiasm. Some have postponed and even abandoned their purchase plans. Those who planned to buy a mid-end car changed their minds and instead, have bought economy models.
Since March, Chinese authorities have raised the fuel prices five times, starting at 3.92 yuan (US$0.48) per litre, to the current 4.26 yuan (US$0.53) per litre. The price of refined oil shot up to an average of 0.5 yuan per litre within 28 days, from June 25 to July 23, "something without precedence in history," according to the Beijing-based China Economic Times.
Experts and other people interviewed noted that in Beijing, a person has to spend about 1,000 yuan (US$123) a month on his or her car, including the cost of fuel as well as the maintenance and parking and insurance fees.
For average wage earners, this is no small sum. According to local press reports, a white-collar worker at a foreign-funded company in the Chinese capital makes 3,000-4,000 yuan (US$370-US$493) a month. Their cars used to be their pride, but now many of them complain that cars have become "money-eating tigers."
In fact, Chen Gang, an editor with local media, has passed on driving his car now opting to cycle to work and back every day.
Chen, 28, said that he has to pay up to 200 yuan (US$24.7) more a month for fuel than in the past. Earning about 5,000 yuan (US$617) a month, he has a family of three to support.
A government employee, who identified himself only as Mr Yang, used to drive to Inner Mongolia in the summer to escape from Beijing's choking heat and humidity. But he, too, had a change of heart.
"I went there by train this summer to save money," he said.
Tough times
Xu, the new car owner from the Changping suburb, said he feels lucky that he bought a modest Citroen relatively inexpensive to keep instead of a brand-name car. Still, he said that he regrets not choosing a gearshift and economy model, which he said can save up to 10 percent of fuel compared with his automatic car.
Car owners aren't the only ones feeling the price pinch. China's car industry is now experiencing tough times, with a significant slowdown reported in the growth of both its production and sales in the first half of this year.
The more than 60,000 taxi drivers in the city, however, are the hardest hit. Most taxi drivers are barely able to make 2,000 yuan (US$247) a month, while the extra monthly cost of fuel is estimated at no less than 300 yuan (US$37), according to the local press.
For taxi drivers, the current fuel prices are almost disastrous. Most of them have had to work 12 or even longer hours per day and almost seven days a week to ensure that there is a little left from the day's earnings after paying their companies to use the cars.
The so-called fenrqian the money paid by drivers to taxi companies must be paid on time and in full, even if taxi drivers are losing money. This prompted the Ministry of Communications to order an emergency subsidy for taxi drivers.
Starting August 10, taxi drivers in Beijing began receiving a monthly subsidy ranging from 240 yuan (US$30) to 300 yuan (US$37), depending on the car models they are using. The cost is shared between the local government and taxi companies.
Giving up driving?
Despite the soaring fuel prices, journalist Xu Xingtang, 40, said that he has no choice but to drive 25 kilometers, five days a week. That is the single-trip distance between his home and work place.
"I thought of using the public transport, but gave up the idea," he said. "Just look at those over-crowded buses that inch forward along streets during rush hours. I have no time to waste on them."
For Ma Weichang, director of the personnel department of the Beijing Municipal Engineering and Designing Research Institute, giving up driving sounds impossible.
"I would not stop driving my car, no matter what," said Ma, 47, who has an annual income of around 100,000 yuan (US$12,330).
Beijing, with a population of about 15 million, now has around 2.41 million cars. These include 1.65 million private cars, compared with 624,000 in 2001.
In July, some car clubs and non-governmental organizations in Beijing launched a campaign calling on private car owners to stop driving cars for one day a month for the sake of environmental protection and energy conservation.
To discourage the use of cars, some suggest that parking fees be raised.
China's auto market, after two years of explosive development in 2002 and 2003, has gone through sluggishness and readjustment since May 2004.
In 2004, China became the world's third largest car market, with private cars accounting for 55.3 per cent of the total sales.
Experts predict that China's demand for vehicles will hit 5.9 million units this year, and the figure would surpass 10 million by 2010.
"China is now enduring an age of high oil prices," said Shi Dan, an energy expert with the Chinese Academy of Social Sciences. He warned that the prices would continue climbing in the near future.
Still, Shi and other experts insist that the domestic car industry will continue to grow, given what they choose to call the "complexity of the Chinese population."
Despite the soaring oil prices, many Chinese still dream of having their own cars. For these people, a car is not only a vehicle of transport but also a symbol of success.
(China Daily October 21, 2005)
