China likely to impose tax to stem demand for fuel

SINGAPORE: China’s energy planners are ready to take the bitter pill of an unpopular nationwide fuel tax to put the brakes on runaway fuel demand in the world’s second-biggest oil consumer. 

Analysts say Beijing is likely to consider a 20% to 50% tax on retail gasoline and diesel prices, which are among the world’s lowest, emulating western Europe’s policy of using high taxes to promote energy conservation and protect the environment.