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High Oil Price Calls for Energy Saving Society

Posted on: Wednesday, 5 October 2005, 09:00 CDT

High oil price calls for energy saving society

BEIJING, Oct. 4 (Xinhua) -- The rise of oil price enables many potential consumers to shift their focus of attention from medium- priced autos to economic and mini ones, said Liu Bin, an auto analyst.

According to the prediction of many car producers, this year will mark the "luxurious auto year". However, it seems to be impossible to realize this prediction as the international oil prices continue to stay high. Since Aug. 1, the OPEC oil price had stood above 55 dollars a barrel, while on Sept. 20-30, the price rose above 57 dollars a barrel.

Liu said high oil price rise for three or five consecutive months is still a short-term oil price rise, which can not totally shake consumers' willingness of purchasing luxurious autos. But it has changed the ideas of those who originally planned to buy medium- priced autos.

This made the mini car market quite popular in the first sixth months of 2005.

"High oil prices will directly affect taxis. While for most private car owners, they came to realize the energy crisis," said Han Ping, an auto sales manager in Fengtai District of Beijing.

The Chinese government's desire to build an "energy saving" society has received a strong response from the ordinary people. Auto booming is definitely in the spotlight of this topic.

Since July, China's media have urged nearly 100 cities in China to lift unreasonable restrictions on mini autos. The government gave positive response.

Experts said the growth of oil price made the consumption of auto more reasonable. People regarded autos as replacement of walking, rather than symbol of identity, thus reducing the desire for medium- priced or luxurious autos.

Source: Xinhua News Agency - CEIS

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