China is planning to cut the price of oil products, the government said Thursday, in a further bid to boost consumption and maintain growth amid the deepening international economic crisis.
Government agencies in charge of finance, transportation and related issues discussed steps to reduce prices at a recent meeting, the National Development and Reform Commission said in a statement on its website.
They also sought opinions from local governments on the reform of the oil pricing mechanism and transportation taxes, which may include the removal of some administrative fees and the introduction of a fuel tax, it said.
Han Wenke, head of the top economic planning agency's research institute, said earlier this week oil products prices would be lowered because the current level was set at a time when international prices peaked.
But he refused to disclose any timetable for the price cut.
Han dismissed the possibility of raising domestic oil prices to the international level in the near term, citing concerns on the potential negative impacts on growth.
"The current global financial crisis is affecting the world economic development," he said, according to Wednesday's China Business News.
"It is not viable to raise energy prices by large margins because it would be a heavy blow to our efforts to stimulate economic growth," Han said.
He added that more policies to boost growth would be announced at a major annual work conference on the economy at the end of the year.
