Fuel prices stay put to combat pollution
Print Edition
THE price adjustment of domestic refined oil products is to be suspended in a bid to combat air pollution, China’s top economic planner said yesterday.
“Giving full play to the leverage effect of refined oil prices is an important way to promote energy conservation and tackle air pollution,” the National Development and Reform Commission said in a statement.
Under the mechanism, which took effect in March 2013, the prices of refined oil products are adjusted when international crude oil prices translate into a change of more than 50 yuan per ton for gasoline and diesel prices within a period of 10 working days.
International prices fell in the previous two weeks, and new cuts for gasoline and diesel prices were expected to be announced yesterday.
The commission said China is facing stark challenges in environmental protection, with smog frequently shrouding major Chinese cities.
“Emissions from automobiles are one of the major reasons for air pollution,” its statement said.
When international oil prices are low, domestic prices for refined oil products will remain steady so that less fuel will be consumed, leading to an improvement in the environment and air quality, according to the commission.
The government is also considering a nationwide credit system based on environmental practices that will make it difficult for offending companies during loan applications and other requests.
Each company’s credit record will cover its environment-related certificates, safety supervision details and environmental fees and taxes charged, as well as its history of administrative punishments for environmental violations and ensuing corrective progress, according to an official document released yesterday.
“Many companies have a weak sense of environmental credit and have been found with severe violations such as commencing construction before a project is approved, discharging more waste than they should and fabricating data to cheat government financial allowances,” said the document from the Ministry of Environmental Protection and the commission.
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