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