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Policies

Improvement of fuel subsidy policy for urban public transport vehicles in support of the accelerated deployment of New Energy Vehicles (NEVs)

Source: International Energy Agency
Last updated: 1 February 2023

The notice stipulates the adjustment of fuel subsidy policy for refined oil for buses in urban areas from 2015 onwards in order to accelerate the [competitiveness and] deployment of new energy vehicles (NEVs) through structural changes of the bus industry. The policy package consists of the following policy measures: 

  • Adjusting current fuel subsidies for urban buses (subsidies will be reduced by 15% in 2015, 30% in 2016, 30% in 2016, 40% in 2017, 50% in 2018, and 60% in 2019)
  • Linking fuel subsidy adjustment to deployment of NEV buses, i.e. the proportion of NEV buses in new and replaced buses should increase from 10% in 2015 to 30% in 2019
  • The available funds from reduced fuel subsidies should be re-allocated urban bus subsidies.

Central government will grant NEV bus subsidies

Want to know more about this policy ? Learn more (Chinese)

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