The municipal government of east China's financial hub, Shanghai, announced on Wednesday a plan to raise subsidies to offset higher energy costs.

From July, the government will subsidize public transport, including buses, ferries and taxis, to cover the extra costs arising from gasoline and diesel price hikes, said Chen Qiwei, Shanghai government spokesman.

"The monthly subsidy for every taxi will increase by 1,050 yuan," he said. That is equivalent to US$153.

Shanghai raised gasoline and diesel prices by 5.57 yuan and 6.03 yuan per liter, respectively, as of July.

Farmers will receive an extra 100 yuan per hectare of cropland every month, and those who live on minimum allowances will get another 15 yuan per person every month, Chen said.

On July 1, the city increased electricity prices by 0.03 yuan per kilowatt-hour, but urban and rural residents and the farm and fertilizer sectors were exempt.

The Beijing municipal government said last week it would raise the minimum wage by 10 percent and increase subsidies for households living below the poverty line amid inflationary pressure.

(Xinhua News Agency July 3, 2008)