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China to raise fuel consumption tax, cut retail prices

Updated: Dec 12,2014 6:32 PM     Xinhua

BEIJING — China will raise taxes on oil products from Dec 13, the second increase in a month.

Tax on gasoline, naphtha, solvent oil and lubricating oil will rise to 1.4 yuan per liter from 1.12 yuan. The levy on diesel, jet fuel and fuel oil will be increased from 0.94 yuan per liter to 1.1 yuan, according to the Ministry of Finance and the State Administration of Taxation.

Retail prices of gasoline and diesel will be reduced by 170 yuan and 400 yuan per tonne after adding the higher tax, the National Development and Reform Commission announced in a separate statement.

Retail fuel prices have been cut for ten times since July as the government reacts to lower crude prices on the global market.