Vice Finance Minister Zhu Zhigang said on Tuesday that China had
offered a total of 8.48 billion yuan (over US$1 billion) in oil
price subsidies to the disadvantaged including grain growers,
fishermen and taxi drivers.
Addressing a national meeting for officials from central and
provincial finance departments the vice-minister urged local
departments to deliver the subsidies to the various sectors
including those involved in public transport.
China raised the price of processed oil twice in the first five
months of this year. Following a price hike last March the price
was raised again by over 10 percent on May 24.
China's net oil import in 2005 totaled 136 million tons which is
about 42.9 percent of its total requirement.
The country has to balance any increases with assistance to
those communities and sectors vulnerable to higher oil prices on
the international market.
(Xinhua News Agency June 7, 2006)