China is taking the opportunity created by low oil prices to prepare a shake-up of its pricing system that could include a new fuel tax and fewer price controls, the government’s top planning body said yesterday.
The National Development and Reform Commission (NDRC) said the government was studying a series of reforms to oil pricing that officials say are designed to stimulate more efficient use of energy and encourage greater use of smaller cars.
Although the NDRC gave few details of the substance of the reform or the timing, the statement follows heavy speculation in the Chinese media in recent days about forthcoming policy changes and analysts said it indicates that the government must be close to making a final decision.
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