When China first considered the issue of levying fuel tax, the oil price was only 15 dollars per barrel on the world market. It has now surged over 60 dollars. Experts said that imposing the fuel tax at an early date will influence China's future energy consumption.

According to the Development Research Center of the State Council and the Ministry of Finance, China will implement the fuel tax policy no later than next year.

This year automobile inventories increased, profits of automakers reduced and sales slumped; but the sales of mini cars still rose. This indicated that fuel price has a great impact on the auto industry, said Zhang Hu, an auto analyst.

He said when the fuel tax is implemented, hi-tech and less fuel consumption autos will lead the market. So manufacturers will be more active in developing products that save energy to sharpen competitiveness.

Low emission and new energy source to replace gasoline are on the forefront of auto technology. China's auto industry will keep up with the trend under the drive of fuel tax, said Chen Ying from Beijing Chemical University.

Fuel tax will promote more reasonable consumption style because car owners must save cost under the leverage of high tax and more people will choose to buy energy-saving cars. In some European cities, people preferred to use public transportation system although they have their own cars. However, it needs government's efforts to speed up road construction and expand public transport systems, said Li Shenning, a driver with 15 years' experience.

Source: Xinhua