CHINA URGED TO INTRODUCE FUEL TAX

Thursday December 15, 6:34 PM

HAIKOU, Dec 15 Asia Pulse - A Chinese Academy of Engineering (CAE) academic has suggested that fuel tax should be levied in the Chinese mainland to urge vehicle owners to consume petroleum more reasonably and economically.

CAE academic and vice president of China Petroleum and Chemical Corporation (Sinopec), Cao Xianghong, made the suggestion in a report he released at the 5th Academic Annual Conference by the divisions of chemical, metallurgical and materials Engineering, which concluded on Wednesday at Bo'ao town of China's southernmost province of Hainan.

Cao said the rapidly increasing number of vehicles pushed up fuel consumption and in 2004, there were 27.42 million vehicles on the Chinese mainland, in comparison with 24.21 million the previous year.

By 2010 the number of vehicles could be as high as 56.69 million and 130.13 million by 2020.

Demand for gasoline, kerosene and diesel oil would increase nearly three-fold, reaching 230-250 million tons in 2020, from 75.14 million tons in 2000. Transport is expected to account for 84 per cent of the total consumption in 2020, up from 68 per cent in 2000.

Cao said because of these factors, the transport sector should play an important role in economizing of the oil products, and small-engine vehicles should be developed.

Cao suggested that the Chinese government should levy fuel tax like other countries, to encourage reasonable and economical fuel consumption.

Cao added that hybrid-power vehicles, natural gas-powered vehicles and diesel-oil-powered vehicles should be put on the popularization agenda.