China’s state planners have again cut the price of gas, while also increasing the consumption tax on fuel. CCTV’s Hu Chao reported this story from Taiyuan in north China’s Shanxi Province.
China cuts oil prices for 12th time in 6 mos but raises consumption taxChina's state planners have cut the price of gas, while also increasing the consumption tax on fuel. CCTV's Hu Chao reported this story from Taiyuan in north China's Shanxi Province.
The National Development and Reform Commission announced the new cut of oil price on Monday. The retail price for gasoline fell by 180 RMB ($29) per ton while the price of diesel fuel was cut by 230 RMB ($37).
At the same time, the Ministry of Finance and the State Administration of Taxation raised the consumption tax of gasoline from 1.4 RMB (22.6 cents) per liter to 1.52 RMB (24.5 cents), while the tax on diesel fuel grew from 1.1 RMB (17.6 cents) per liter to 1.2 RMB (19.4 cents).
It’s the twelfth drop in a row of retail fuel prices since July 2014. Gasoline and diesel fuel haven’t been this low since 2009. In Taiyuan, the cut is over one RMB (16 cents) per liter, which can mean big savings at the pump.
“It’s good! For private car owners, the lower the price, the better. It saves me dozens of yuan when filling up,” a driver who did not give her name said.
The falling prices mean lower transport costs for many companies.
“The drop in oil prices has lowered the cost of transport. The fuel cost burden has been eased. That can save a big delivery truck nearly a hundred yuan a day,” a truck driver at the Taiyuan Yingze Logistic Park who did not give a name said.
However not everyone will benefit from a reduction in fuel prices.
“While the private car owners get direct benefits from the falling retail oil prices, some industries get indirect benefits, including logistics, tourism, and some other industries that consume oil. But the energy industries are badly affected, especially coal and new energy,” Shanxi Academy of Social Science professor Wang Yun said.