China's existing pump prices will go down a bit as the country begins reform of fuel taxation and refined oil product pricing system, which is expected to take place on Jan. 1 of 2009, an official said on Tuesday.
Xu Kunlin, vice head of the pricing department at the National Development and Reform Commission (NDRC), told reporters that there was room to lower the country's current fuel prices.
Current pump prices in China, if converted, were equivalent to a world crude oil price of US$83.5 a barrel, he said.
"When the fuel taxation reform begins, we will adjust the fuel prices based on the world oil price then," Xu said.
On Monday, world crude oil recovered from last week's losses and stood at above US$43 a barrel on the New York Mercantile Exchange.
Currently, Chinese drivers are paying much more than those in many other countries because domestic fuel prices have been unchanged since June despite plunge of world crude oil prices. Government-set prices are changed only infrequently.
(Xinhua News Agency December 9, 2008)
