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BEIJING'S 66,000 taxis have started to charge a 1 yuan (15 US cents) fuel surcharge whenever the meter hits 3 kilometers.
The surcharge will almost offset higher fuel prices, taxi driver Cui Hongli said.
The surcharge is pegged to the price of benchmark 93-octane gasoline, kicking in when it reaches 6.5 yuan to 7.1 yuan per liter.
Officials said taxi fees would rise more if the fuel price goes higher, but they did not specify a figure. The price of 93-octane gas rose to 6.66 yuan per liter on November 10.
Cabbies have to provide fuel surcharge receipts besides the standard receipts. The preparations for the receipts delayed the implementation of the surcharge until yesterday.