The NDRC made it clear Thursday that domestic fuel prices would remain unchanged on Jan. 1, 2009, when the fuel tax is expected to kick in.
The State Council also said the country's domestic prices would be "indirectly linked" to global crude prices "in a controlled manner".
The pricing of domestic refined oil prices would be based upon global crude prices, while also taking into account domestic production cost, taxation, logistic fees and "appropriate profits", according to the plan.
China's government-set fuel prices change infrequently. Chinese drivers are paying much more than those in many other countries because domestic fuel prices have been unchanged since June despite tumbling global prices.
China has been pushing for fuel tax reform for many years, and the idea of a fuel tax was raised as long ago as 1994. Both government officials and academic economists have said that the current global oil price plunge presents a window of opportunity for this reform.
The world crude oil price has plunged more than 70 percent from a peak of 147 U.S. dollars per barrel in mid-July.
(CCTV, Xinhua News Agency December 19, 2008)
