 China has slashed the benchmark prices for fuel from 6.37 yuan, or 93 U.S. cents per litre, to 5.46 yuan.
The move comes earlier than the long-awaited government scheme on fuel taxation and pricing slated for January 1st next year. Taxi drivers are expected to be the biggest beneficiaries.
"This plan will bring taxi drivers lots of benefits. Take myself for example. The price cut can help me save more than 20 yuan a day, or about 800 yuan for a month. In my daily work, 40% of the income is paid to patrol, which is a big proportion."
"The price cut of petrol and road tolls means an annual saving for me of more than 3000 yuan."
Chian's top economic planning body, the National Development and Reform Commission, made it clear on Thursday that domestic fuel prices would remain unchanged on January 1st when the fuel tax is expected to kick in.
This round of price cut is considered as China's revamp of its oil pricing system to peg it with the global market.
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