China pushing fuel reform, debating details: source

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BEIJING (Reuters) - China's leaders are determined to seize the opportunity offered by falling global crude prices to push through reform of domestic oil pricing and introduce a fuel tax, a source said on Wednesday.

The country's energy officials are still discussing technical details of the reform plans however, the source, with knowledge of the situation, told Reuters.

"The cabinet leaders have sent a specific order that the reform should be pushed forward as soon as possible," the source said.

Officials from relevant government departments will have another round of discussions this week about the practical challenges for implementing both tax and pricing changes.

"A practical plan is needed first, or else a lot of troubles will arise in the future," the source said.

China's state-regulated domestic fuel prices have long been held far below international crude oil prices, forcing its refiners to shoulder a big loss as they supply motorists.

But international crude prices have slumped in the last few months, opening up a rare window of opportunity - while Chinese fuel is relatively expensive - for the government to harmonize the domestic price regime with the international market and to introduce a fuel tax without causing extra pain at the pump.

(Reporting by Eadie Chen; editing by Tom Miles)

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