Beijing government mulls four subway pricing options

Beijing's subway is infamous for its rush hour crowds. Despite the addition of new lines every year, the underground system has struggled to meet demand, as passenger numbers continue to grow by 30 percent annually.

Beijing currently has 456 kilometers of subway lines in operation, carrying some 10 million passengers every day. And 40-percent of those passengers come during rush hour alone. At its worst, subway cars can be up to 40 percent over-capacity, which means as many as nine passengers have to stand within one square meter.

To cope with this, authorities have tried adding more trains. The Beijing municipal government has also increased its public transportation budget every year, with over 18 billion yuan, expected to be allocated this year, more than even subsidies for public health.

Travelling on Beijing's subway during rush hour is every commuter's dreaded journey. But on the upside it costs a flat rate of only 2 yuan anytime, anywhere. Well those days may soon be gone as Beijing Municipal government just announced four proposals to raise subway fares to help ease heavy passenger flows during peak times.

These are "adding a peak-hour charge", "adopting distance-based pricing", "raising the flat price regardless of distance or hours", and "raising and dropping fares depending on the situation".

The current 2-yuan fare has been in place since 2007, which allows passengers to ride any line and make any number of transfers. It is much lower than fares in Hong Kong and Shanghai.