After the first hour, the fee will go up to 6 yuan per 30 minutes from 6 yuan per hour.

The new rate calculates time by a segment of 30 minutes, instead of an hour, officials said.

Parking for less than 15 minutes will be free.

The rates apply from 8am to 8pm. From 8pm to 8am the next day, parking will cost a flat rate of 5 yuan. The increase is aimed at reducing road congestion and solving the parking problem downtown. Hangzhou has about 1.2 million vehicles but only 520,000 parking spaces, officials said.

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