The State Council said on Wednesday it would seek public feedback on pricing reforms for refined oil products and a proposed fuel tax.

The move is being seen as a vital step in boosting economic sentiment, the council said. The feedback will also lead to "fair taxation, enhanced energy efficiency and greater environmental protection".

Wednesday's announcement is a milestone in the country's energy reforms, analysts said.

"The country should fully reform its energy sector to make it market-oriented," said Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University.

The fuel tax will help people better understand the need for energy conservation, said Zhou Dadi, a researcher with the Energy Research Institute under the National Development and Reform Commission.

"As China does not have abundant energy resources, the tax will help change energy consumption modes," Zhou said.

The fuel tax was first proposed in 1994. The government later said it would introduce the tax "at an opportune time".

(China Daily November 27, 2008)