When deciding the ticket prices for the up-coming Spring Festival peak traffic season, the government should consider not only the economic costs but also the cost of people's livelihood, says an article on the website www.china.com.cn. The following is an excerpt:

Last week, a document on the readjustment of traffic and transport prices following the oil price rise made by the National Development and Reform Commission was cancelled a day after it had been posted on the official website. When quizzed about the reason, the head of the department in charge of commodities pricing in the NDRC said that's because the part of the document concerning ticket prices during the coming Spring Festival peak traffic season was misinterpreted by some media.

It is yet undecided whether the ticket prices during that season will be raised and related researches are still under way, said the official.

The part of the document that is said to be misinterpreted by the media reads: "The ticket prices of the 2008 Spring Festival peak traffic season can hardly maintain the level of that of 2007."

It's just a simple statement without saying anything about price rise.

In 2007, ticket prices were not raised during the Spring Festival peak traffic season. And the prices remained at the previous level in 2008. People now are worried that the prices will be increased in 2009.

The traffic costs must be considered when it comes to ticket prices during the Spring Festival. That's a market rule. Zhang Zhi, an associate professor with Capital University of Economics and Business, told reporters that oil costs usually account for 25 to 30 percent of the total costs for road traffic enterprises, and thus there is still room for price reduction in other costs like management fees and taxes.

Oil price rise will pose little threat to railway transportation since the percentage of electric railways has already risen to 27 in China. Besides, the government must take the cost of people's livelihood into account when deciding the ticket prices during the Spring Festival.

Chins is yet to have a mature oil pricing mechanism. The oil price in China is still high against the deep slump of oil price in the international market.

If the government still insists that oil price increases the traffic costs during the Spring Festival, it actually refuses to see the truth that domestic oil price is higher than the international one.

Why not fix the domestic oil price problem first and then tackle the Spring Festival ticket issue?

The peak traffic season during the Spring Festival is closely linked to the livelihood of the people, especially when the macro economy is experiencing a downturn.

It's the responsibility of the government to let the public feel its concerns over their lives during the Spring Festival traffic season. And the government must understand clearly which is more important: the traffic costs or the costs of people's livelihood.

Whether ticket prices during the Spring Festival will rise is an important indicator of a harmonious Spring Festival peak traffic season.

The core of this issue is the battle between the interests of traffic sectors and the general public. When most people have no choice but to return to their hometowns by public transport facilities for family reunion during the Spring Festival, the traffic enterprises monopolize the market and it's thus easy for them to profit from it.

If concerned authorities think too much about economic benefits instead of people's livelihood, the Spring Festival transport would become a tool for traffic sectors for making money.

(China Daily November 25, 2008)