Taxi fares have been raised in Beijing for the first time in 7 years and it's a move expected to ease the difficulty of hailing a taxi in the capital, as well as increase the income of taxi drivers.

 

　　CRI's Hefei has more.

 

　　Under the revised rules from the Beijing Municipal Commission of Development and Reform, the 3 kilometer basic fare of a taxi will be increased by 30 percent to 13 yuan, or about 2.1 US dollars.

 

　　And the cab fare will charge at 2.3 yuan per kilometer after the first three kilometer, a 15 percent increase from the previous of 2 yuan.

 

　　At the same time, fuel subsidy surcharge comes from 3 yuan, down to 1.

 

　　Adjustment to the city's nearly 66 thousand taxi-meters have already started on June 10 and will be finished by the end of this month, before which un-adjusted meters will retain the old pricing system.

 

　　Taxis in the gridlocked city have long been complained as hard to hail, especially during rush hour.

 

　　With this price hike, passengers looking for a taxi for short journeys are expected to be diverted to other means of public transportation.

 

　　"I think in the future if I'm about to go somewhere distant, taxi will still be my choice. But if the destination is not so far away, I would prefer other public transportation, for example subway or bus."

 

　　But this potential decrease in the number of passengers isn't something one taxi driver in the city is worried about.

 

　　"2.3 yuan is not a big increase and I think passengers in need will still choose taxi. But those who go to somewhere near or do not necessarily need to take a taxi might drop this option, thus they can spare these resources to someone who are really in need."

 

　　Meanwhile, to ensure the income of taxi drivers does go up from the fare hike, the Beijing Municipal Commission of Development and Reform has also announced a ban on taxi companies raising their franchise fees - an average of just over 5 Thousand Yuan which the drivers have to pay every month regardless of how much they earn.

 

　　Li Sufang, an official from the commission, elaborates.

 

　　"The earnings from the price hike should all go to taxi drivers and taxi companies should pay for the adjustment costs, which is about 5 million yuan totally. And the taxi companies should continue to shoulder their due part of fuel subsidy to drivers."

 

　　And to encourage more taxis on the road during rush hour, the commission has also regulated an extra 2 kilometres per fare for every 5 minutes the taxi stands still or drives at under 12 kilometres an hour - a trend commonly seen during the rush hours of 7 to 9 in the morning and 5 to 7 in the afternoon.

 

　　For CRI, this is Hefei.