China won’t adjust levy

The National Energy Administration (NEA) announced in early March that China will not adjust its “special oil gain levy” which amounts to 20-40% of the excess income. China’s special oil gain levy, implemented on March 26, 2006, stipulates that companies selling locally produced crude oil above US$40 per barrel should pay the government a special levy. However, media reports said analysts think the collection threshold should be lifted to US$60 per barrel to lessen the burden on oil suppliers, as global fuel prices are low. (March 6, 2009)