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CHENGDU: China will impose a fuel oil tax in the near future, Chen Deming, vice-chairman of the National Development and Reform Commission, said yesterday, without elaborating.

He also said the country is waiting for the right time to adjust its refined oil pricing mechanism.

Reform of the mechanism is closely tied to international oil price fluctuations but the government has to consider people's capacity to adapt to the changes, said Chen.

The purpose is to link the prices of refined oil products on the domestic market more closely to international levels.

In March 2006, China first raised refined oil prices, while offering subsidies to disadvantaged communities and public service sectors.

Xinhua

(China Daily 04/03/2007 page1)