Beijing - The Chinese government on Thursday cut fuel prices and announced a long-awaited fuel tax scheme, seeking to boost economic growth slowed by the global financial crisis.
The wholesale price of petrol will be reduced by 900 yuan (132 dollars), or about 14 per cent, to 5,580 yuan per ton from Friday, the National Development and Reform Commission (NDRC) said.
The factory price of kerosene for airplane fuel will drop by 2,400 yuan per ton, or 32 per cent, to 5,050 yuan from Friday, the NDRC said in a notice.
The diesel price will also fall to 4,970 yuan, down 1,100 yuan, or 18 per cent.
Pump prices will fall by 0.91 yuan per litre for petrol and 1.08 yuan per litre for diesel.