China decided to slash domestic fuel prices starting midnight Thursday, as the country gave a green light to a long-awaited plan on fuel taxes and refined oil product pricing.
The country would slash the benchmark prices for fuel starting midnight Thursday, said the National Development and Reform Commission (NDRC).
The benchmark prices for gasoline would be reduced to 5,580 yuan per tonne, down 900 yuan (131.7 U.S. dollars), or almost 14 percent, while those for diesel was adjusted to 4,970 yuan per tonne, down 1,100 yuan, or more than 18 percent.
The commission explained that pump prices for gasoline would be tuned down by 0.91 yuan per liter, from midnight Thursday, and diesel prices down by 1.08 yuan per liter.
In the meantime, the benchmark prices for jet fuel would be slashed by a bigger margin of more than 30 percent, or 2,400 yuan, to 5,050 yuan per tonne.
Such moves to cut fuel prices had come along with the country's newly approved plan on fuel taxes and pricing reforms. The State Council said Thursday it had decided to put the plan into effect on Jan. 1, 2009.
The country will annul six types of fees on road maintenance and management, and at the same time raise the gasoline consumption tax from the current 0.2 yuan per liter to one yuan per liter and diesel consumption tax from 0.1 yuan per liter to 0.8 yuan one liter, according to the plan.
These details are the same as stated in the draft plan, which was unveiled earlier this month to solicit public opinion.
The draft plan was largely welcomed by Chinese drivers, as they would be able to pay less if they drive less. Currently, automobile users are charged with fixed fees regardless of how much gasoline or diesel oil they use.
But many expressed worries over a hike in fuel prices because of the fuel tax.
