In March this year, the National Development and Reform Commission issued an oil price readjustment plan, including the establishment of a subsidy system for disadvantaged sections of the community and public service sectors, a price linkage mechanism for related industries, and a fiscal adjustment mechanism for oil enterprises.

The recipients of the subsidies mainly include farmers, fishermen and fishing firms, state-owned forestry enterprises and urban public transportation firms.

For the transportation industry affected by oil price hikes, the government decided to establish a mechanism linking transportation fees and refined oil prices in such areas as civil aviation, railways, taxis and highway passenger transport. On the basis that the enterprises themselves bear some influence on the rise in oil prices, the government adjusted the transportation fees based on market factors.

The fiscal adjustment mechanism for oil enterprises mainly refers to the system in which the state collects special proceeds from oil enterprises that have made excess profits. The funds will be used to subsidize disadvantaged communities, public service sectors and oil refining enterprises that incur losses because of the inverted price system.