Professors propose higher fuel taxes to Premier

Shanghai, December 26 (Gasgoo.com) China has unveiled the draft plan to raise fuel tax four-fold to 1 yuan per liter from January 1st with the tax on diesel up seven-fold to 0.8 yuan per liter, but now ten university professors are proposing to raise the taxes another three times higher, a Chinese newspaper reported Friday.

The professors said in a letter submitted to Chinese Premier Wen Jiabao that 3 to 4 yuan per liter is a more desirable figure as China is short of the oil storage, according to a report from the Nanfang Daily.

The newspaper cited the report as saying that China is the world's third-largest oil importer and also the second-largest consumer, while its tax rate is much lower than in the European Union and also in neighboring countries and regions.

"The 1 yuan per liter fuel tax can not reflect China's oil shortage realities. The timing is the best, perfect, because global oil prices are low. By introducing a tax hike, the government will be able to minimize potential resistance from the general public," it said.

The ten professors come from some key universities located in Beijing including the Tsinghua University, Peking University and Renmin University of China.