China Oil Subsidies: Are they affecting our prices?

Lately, I've found myself surfing the web for articles on China gas prices. I wondered, "What do they pay at the pump? Are they squeezed, too?"

One article, from the L.A. Times, suggests China's oil subsidies, which keep prices around $2.69 a gallon (jeez, remember when gas was THAT cheap?) might end after the Olympics are over. China doesn't want to rile up the population with higher gas prices, especially after the recent earthquake disaster:

"Before the Olympics, stability is paramount," said He Jun, an oil analyst at Beijing Anbound Consulting Co. He added that last month's earthquake in Sichuan province drove that point home for Chinese leaders and noted that large supplies of fuel are being diverted for reconstruction work in that area.

Other countries that subsidize fuel costs have boosted prices recently, in some cases stirring unrest. Protests flared late last week in India, where the government upped prices by about 10%, and there were calls for mass rallies in Malaysia after gasoline prices jumped 41% overnight.

Barrel prices are expected to hit $200 by next year, and with China's increasing energy consumption, I wonder if I'll be paying $5.00 + at the pump.

I've been pricing scooters recently, and I'll likely purchase one this month. I won't commute daily on it, but I'll try to intersperse my regular driving with it, and the 90 mpg I get on the scooter will balance out the 26 mpg my car returns.