Fuel tax unlikely to hike inflation

China's impending fuel tax reforms would not lead to a substantial hike in the country's inflation level as consumer prices are softening and the global and domestic economies are slowing, analysts said.

The National Development and Reform Commission is expected to publish the long-anticipated fuel tax plan after suitable revisions soon, Zhang Ping, head of the commission, said yesterday. "Our reforms will convert various tolls and fees for water and road transport into fuel consumption tax," he said, without giving any further details on the changes in the fuel pricing mechanism.