No benefit from gas price cut

Despite a decrease in gas prices at Beijing's pumps, the reductions are not big enough to reverse recent rises in prices of fuel-intensive industries, experts warned yesterday.

The price of gasoline No.93 was lowered from 8.33 yuan per liter to 8.07 yuan ($1.32-1.28) in Beijing, according to the National Development and Reform Commission, reported Beijing Daily yesterday. Diesel was also reduced by 0.26 yuan to 8.04 per liter. But gasoline prices in other Chinese cities, including Shanghai, Chongqing and Shenzhen, are already under 8 yuan per liter.

"The reduction is good for industries like aviation and taxis, but the effect will not be very evident for consumers," said Zhou Hongchun, a researcher with the Development Research Center of the State Council.

It is unlikely, said Zhou, that the current three-yuan taxi surcharge will be reduced in the near future.

If the flag-fall for taxis is to be increased, the administrative process would take a long time, whereas imposing a surcharge is quick and supposedly temporary, he said.

Taxi firms do not plan to remove the three-yuan surcharge, imposed on all journeys longer than three kilometers. Wanquansi taxi company in Fengtai district, with 2,000 cars and 3,000 staff, said they will canvass staff every time there is a change in oil prices to see how it affects them.

"This time we'll ask them too, but not immediately," the company representative said.

Wang Hejie, a driver with Xinyue Lianhe taxi company in Chaoyang district, has been a cabbie for six years, and also believes the surcharge is here to stay.

"The price reductions are too small, and we won't see any obvious effects," said Wang. The constant fluctuation in prices is annoying, he said, and any price reductions never match the previous increases.

Many residents seem put off taking taxis by the surcharge.

Wang Chen, 35, who works at a post office in Chaoyang district, said that she only hailed a taxi once after the increase.

"I used to ride in taxis a lot, but I now won't even if the surcharge is reduced," said Wang.

Another resident, surnamed Wu, who works in a property company, said that he feels cab prices are too expensive now.

"I use taxis less than before because it's too expensive to pay three yuan extra," he said, adding that he is willing to pay two yuan, but no more.

He prefers that the flag-fall fare, at 10 yuan, should remain unchanged.

"We have got used to the current way," he said.