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(Xinhua)
Updated: 2007-12-07 19:02

China will collect more than 60 billion yuan (US$8.1 billion) in special funds from oil producers to offer subsidies to public service sectors and low-income families feeling the pinch of increasingly higher prices.

In the first nine months, the country's oil producers have paid 41 billion yuan into the special fund, the National Development and Reform Commission said on Thursday in a statement posted on its website.

The special fund was launched to regulate the part of profits earned by oil producers from soaring international crude prices. The country's domestic crude prices were roughly in line with global prices, unlike government-controlled prices for refined products.

The commission said it had provided subsidies totaling 42 billion yuan this year for taxi drivers, low-income families challenged by higher charges for LPG and farmers affected by increased diesel prices.

In 2006, the special fund received 45 billion yuan from oil producers. The commission said 21 billion yuan was allocated to finance subsidies.

China has raised prices of refined oil products four times since last year. In the latest move, it raised the price of gasoline, diesel and aviation kerosene by 500 yuan per ton, a rise of almost 10 percent, starting on November 1.

The move was aimed to close the gap between soaring international oil prices and domestic prices. This had led to a supply shortfall as some refineries stopped processing to avoid losses.