China unveiled a number of subsidies for fuel users in an effort to prevent unrest and soften the blow of the big increases in energy prices which took effect on Friday.

The government announced specific subsidies for grain farmers, taxi drivers and low-income groups, and said public transport fares would not go up as a result of the rise in headline prices. The finance ministry said the targeted subsidies would amount to Rmb19.8bn ($2.9bn, €1.8bn, £1.5bn).

The new subsidies indicate the extreme political sensitivity of the decision to raise energy prices, with the government having to balance a threat to social stability from oil shortages against the risk of pushing up inflation, which is already high. ... Read full article