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Finally, there's news that local residents have been waiting for - a survey confirming the city as more expensive than Beijing.

For years, Shanghai's citizens have raised eyebrows at stories the capital is pricier than their famously exorbitant hometown, but now the city's motorists have struck a blow for what millions have known all along.

In a study by US market research company ACNielsen, Shanghai finally showed its true colours and proved more expensive than its northern rival, at least in one key sector.

Auto owners in the city splash out an average 1,360 yuan (US$170) every month to keep their cars on the road, an online survey of 1,862 car owners across the country found, compared to an average 1,200 yuan (US$150) in Beijing.

"I knew Shanghai was more expensive than Beijing, especially for things like parking fees," said Edward Zhao a 35-year-old translator in Shanghai.

"The price of major products like cars is probably quite similar, I think it's Shanghai's service costs that make the difference. I might buy a car in the future but everyone I know that has one complains about the running costs all the time."

Looking at eight provinces alongside the two big cities, the survey showed China's motorists spent an average 1,120 yuan (US$140) on their cars each month, covering costs such as fuel, parking, road tolls and insurance.

The cheapest place to run a car was East China's Shandong Province, with an average monthly outlay of 872 yuan (US$110).

The biggest single expense across the whole country was fuel, accounting for more than 50 per cent of monthly spending.

As fuel prices are fixed at the same level across China, it was other charges such as for parking, maintenance and car washing which pushed Shanghai to the top of the rankings.

"Some drivers in Shanghai are very proud of their cars and spend a lot of money on making sure they look nice," said one Shanghai motorist who asked not to be named. He claimed he spent just 500 yuan (US$65) a month running his almost-new VW.

Residents may be feeling a rewarding glow of vindication now they have evidence to back up their claims of Shanghai's lofty living costs, but they are also showing signs of having put up with high prices for long enough.

A related telephone survey found that fewer people in Shanghai were considering buying a new car in the next 12 months than in either Beijing or Guangzhou.

But with one in five families across Beijing, Shanghai and Guangzhou owning cars, and more than three times as many people saying they plan to buy a car in the next year than two years ago, China's motoring boom is showing no sign of running out of gas.

(China Daily September 20, 2006)