China is considering ways to revise its fuel pricing system, including a new fuel tax and fewer price controls, in response to lower oil prices, the Financial Times reported. The National Development and Reform Commission (NDRC) said the potential reforms would encourage more efficient use of energy and greater use of smaller cars.ã€€The NDRC gave no further details of the reforms and did not say when they would occur. China has long considered changing to more free-market oriented oil prices in place of the current system of government-dictated prices. While such controls can help reduce inflation when oil prices are high, this imposes heavy losses on the country’s refiners.
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