The Ministry of Railways will not continue to enjoy the arbitrary right to increase rail ticket prices during transportation peaks.
The State Development Planning Commission announced on Tuesday price changes in rail transport must first be discussed in public hearings.
The commission is busy preparing for a public hearing in
Beijing -- pencilled in for next month -- and experts, consumer representatives, railway officials and the local pricing authority will be invited to the discussion.
Sources with the commission said the hearing will set an example for provincial-level governments on how to preside over such events.
The commission issued a recent circular calling for monopoly industries - such as telecommunications and transportation enterprises -- to carry out public hearings before changing their prices, as consumers' and experts' opinions must be taken into account.
Following the circular, road communication departments across the country have or are expected to hold public hearings before changing ticket prices for the upcoming Spring Festival, a traditional time for family reunion.
The Ministry of Railways refuses to talk about the public hearing but confirmed ticket prices will increase next year.
The arbitrary price rise from the railway ministry drew widespread criticism during Spring Festival this year, and even was sued to court.
Lawyer Qiao Zhanxiang of Hebei Province sued the ministry in a
Beijing court for violating related items of Price Law early this year.
Though the railway ministry won the case in court last month, Qiao won support from the media and public, who echoed Qiao's criticism to the ministry's monopoly and arbitrary.
The ministry still insisted that increasing ticket price is a good measure to fill the deficit gap of high operational costs during the festival.
However, it did acknowledge the price rise could discourage passengers from using the over-crowded railway sectors during the transportation peak.
Minister of Railways Fu Zhihuan recently said his ministry welcomed suggestions and criticism from the public on rail ticket pricing but the price rise is expected to continue next year.
