Letters and Blogs

Don't let pre-tax gas prices fool you

The price of China's refined oil underwent two hikes last month. To prove that China's gas price is still lower compared to the international market, some experts cite data that the domestic pre-tax gasoline price is only 3.47 yuan (51 cents) per liter, 13.3 percent lower than that in the US; the pre-tax diesel price in China is 1.75 percent lower than US prices. However, it can be argued that China's gasoline price appears cheap but only when calculated in its pre-tax term.

This unreasonable comparison seems to turn a blind eye to common sense: Consumers have to pay the full taxed price. Thus the reality of the rocketing gasoline price in China is indubitable. As pointed out by Professor Lin Boqiang, director of China Center for Energy Economics Research, Xiamen University, China's gasoline price is twice as high as the average price in the US, mainly due to the high tax.