China's National Development and Reform Commission has announced plans to slash fuel prices for both petrol and diesel fuel.

The "Beijing News" published an article hailing this measure, calling it an embodiment of the healthy pricing mechanism and a timely adjustment to both the oil market and the public's expectations.

China's State Council has decided to implement a scheme starting next year to levy a fuel consumption tax, while abolishing six categories of fees, including road maintenance tax and highway toll charge.

The article says petrol prices therefore will be reduced by more than 1.7 yuan per litre, a move that will offer more benefits to consumers.

Meanwhile, under the impact of the global financial crisis, energy prices have inevitably plunged, with crude oil hovering between 40 and 60 U.S. dollars per barrel. The paper says current prices still leave room for Chinese oil companies to reap profits.

The paper notes that due to some national macro control policies, China's refined oil prices are indirectly connected to the international crude oil market. Thus there is less fluctuation in China's oil prices than is currently found in other parts of the world.

Therefore, the paper suggests the Chinese Government maintain the pricing mechanism and take advantage of this "buffer zone" to adjust fuel prices to suit supply and demand, and maintain the benefits to consumers.