China raises fuel tax, changes gas price scheme to boost alternative fuels
China has decided to stimulate demand for alternative fuels with a standard financial measure: raising the fuel tax. The fuel tax on gasoline will climb from the equivalent of 13 cents a gallon to 64 cents, while the tax on diesel will rise from 6.5 cents a gallon to 51 cents. Ouch. While this measure will be partially offset by the current low oil prices, China has announced plans to keep fuel prices more directly tied to crude oil prices. The Chinese government believes that this measure, the perceived volatility in gas prices, will help citizens opt for more fuel-efficient cars, alternative fuels and fuel-saving technologies. The first changes to the gasoline price scheme were designed in 1994, but now is considered an ideal time to update them.[Source: Gasgoo]
Reader Comments (Page 1 of 1)
jody 10:31AM (12/11/2008)
If worldwide crude prices are supposed to determine the price at the pump, how is it possible that the gas in china is less than half price?
I think it is obvious that we are completely manipulated.
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Ignatius 2:02PM (12/11/2008)
Maybe if we stopped invading countries, we'd be liked a bit more by the rest of the world.
Potsy 11:22AM (12/11/2008)
i wish we had the balls to raise the gas tax here in the US....we saw the effect on demand when the price increased.
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Mark 11:47AM (12/11/2008)
#2. I agree. Our family drives 40k miles per year (sorry, mother nature!). yet I strongly wish for a gas tax hike - preferably spread over many years. It has to go along with some way to lessen the burden on lower-income households of course.
This would protect the alternative fuel market just as China is doing.
come on Obama! please!!