Chinese drivers could soon be in for some major sticker shock at the pumps. The government wants to replace road tolls with new fuel taxes which would be much more convenient to collect. With the new taxes, the pump price of $2.41/gallon for 93 octane and $2.52/gallon for 97octane could jump to as much as $5/gallon. Such a change could have huge impact on the Chinese economy if implemented in one step. It's more likely that the changes will happen gradually.
This could definitely help with China's pollution problems if it encourages more people to use public transportation instead of driving. On the other hand it could be a problem for automakers outside of China. If the Chinese domestic market takes a big hit, their manufacturers are likely to step up export efforts.
[Source: China Car Times]