China's Cabinet will solicit public opinions on a proposal to reform the nation's refined fuel pricing and tax, the central government said Wednesday. But it gave no details on the proposal by press time.
A State Council meeting chaired by Premier Wen Jiabao yesterday deliberated the reform proposal and decided to publish details to the public for opinion, the government said in statement on its Website.
The reform could help boost China's domestic demand and energy efficiency, and sustain a sound economic growth, it said, citing the meeting. It didn't give details. More details about the reform are to be revealed today at a National Development and Reform Commission press conference in Beijing.
Speculation has been rife that China would launch a reform to its regulated fuel pricing mechanism over the past weeks as international crude oil prices plunged. Industry experts have said lower crude offers a good opportunity for China to reform.
Chinese refiners had booked huge losses when crude prices were high as the government didn't raise retail fuel prices timely. And now, the government has to hold off fuel price cuts to let refiners catch up, even as domestic pump prices are now lower than United States levels.
While industry experts said the collapse in crude prices offers a rare opportunity for China to reform its pricing regime, a plan has been not easy to formulate because the reform may involve the cancellation of certain road tolls which would in turn affect jobs. The government has also to consider how the public, especially the low-income earners, could afford higher fuel prices if full liberalization was allowed in pricing.
(Shanghai Daily?November 27, 2008)
