China to delay fuel tax

An official from the Ministry of Finance said that China would delay the implementation of a fuel tax until oil prices stabilized, Reuters reported, citing state media. It is expected that the tax, which has been in the works for over a decade, could be around 25%, and could cover retail gasoline and diesel sales, while eliminating road tolls. ""The introduction of fuel tax needs some essential preconditions, such as relatively stabilising oil prices and a fuel price scheme in place," said a senior ministry official. Beijing recently introduced price hikes of up to 18% on gasoline and diesel prices, but fuel remains heavily subsidised.