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The gas price hike should be jointly shouldered by taxi drivers, passengers, government and companies, says a commentary in the Beijing News. An excerpt follows:

Taxi drivers in Beijing will be subsidized 150 yuan (US$18) per month starting from this month because of the continuing increase of gas prices. This is a temporary subsidy. Related departments are now drawing up a plan to adjust taxi fares.

It is reported that the municipal government is to hold a hearing on the price adjustment plan. As an important part of public transport, taxis concern the public's everyday lives. It is quite necessary to hold a public hearing on this issue. And because of the price hikes, it is appropriate to increase fares. Therefore, the hearing will be held mainly on how much to increase fares.

The hearing is expected to provide an ideal answer. But it should be made clear that the increasing operational cost resulting from the gas price hike should be shouldered not only by taxi drivers and passengers, but by the government and taxi companies also.

As part of urban public transport, the taxi industry is also a public welfare undertaking. Actually, the gas subsidy provided to the industry last August was shouldered by both the government and taxi companies.

The government has taken the initiative to perform its duties. And others should follow. Companies should reduce the administration fee, collected from taxi drivers and the drivers should lower their income expectations. Passengers should also accept the possible price increase.

But a steep rise in taxi fares is harmful. Passengers may avoid taxis and drivers' incomes will consequently reduce. And the earnings of companies and the government will be affected eventually, which causes a vicious circle.

Therefore, at the hearing, related departments should let taxi drivers speak freely. They should investigate the opinions of passengers and evaluate possible negative impacts. The management expenditures of the taxi companies should be taken into account and doubts about the administration fee should be answered. Concerned departments like industry and commerce should adjust taxes and fees too to share the costs.

(China Daily April 21, 2006)