International oil prices are still on the rise, while domestic oil price is still being held to the same level of last November. Petroleum expert put forward two proposals to help deal with the oil price hike.

International oil prices have jumped to almost US$140, while domestic oil prices have been staying still since last November, leading to the recurrence of oil shortage in China. How will the government react at this critical stage?

Back in the second quarter, the Ministry of Finance (MOF) announced a tax refund policy on the one million tons of gasoline and 2.5 million tons of diesel oil imported by PetroChina and Sinopec. However, the policy will abate by the end of June.

Dong Xiucheng, the vice-dean of the School of Business and Management in China University of Petroleum, told this paper that the tax refund policy should stay in effect, as it doesn't influence the consumer price index (CPI) in any kind of way.

Also, Dong, an expert on this subject, said that the special oil income levy should be adjusted.

"It's time for an appropriate adjustment," Dong said, arguing that this policy was adopted when the international oil price was around US$60 and things have changed a lot with the oil price rising towards US$130.

For more details, please read the full story in Chinese (http://www.cnstock.com/newcjzh/headine/2008-06/12/content_3406537.htm).

(China.org.cn translated by Yan Pei, June 12, 2008)