OREANDA-NEWS. December 10, 2014. China said Friday that it will raise the consumption tax on a range of oil products in a move to promote conservation and boost the attractiveness of alternative energy.

The move, announced by the finance ministry, was also aimed at reducing pollution--a problem that authorities have been struggling with as air quality levels plummet across much of the northern part of the country and popular discontent increases.

The higher tax, which will hit consumers, will help boost the government's revenue.

China will raise the cost of gasoline, lubricants and naphtha by 0.12 yuan (two cents) per liter while the tax on diesel, jet fuel and fuel oil will rise by 0.14 yuan per liter.

"A great number of our cities have been troubled by relatively large scale, long-lasting and serious smog, affecting the worklife and health of the people," it said.

The increases will also "guide consumption in the right direction, promote efficient use of oil resources and help promote development of production in the new energy sector," according to the ministry's statement, which was first reported by state media.

The taxes will help curb oil consumption. The government expects carbon emissions to peak around 2030 and has pledged to make non-fossil fuels comprise about 20% of the energy mix by then.

The announcement was made as oil prices on global markets tumbled to fresh lows after the Organization of the Petroleum Exporting Countries decided to hold production at previous levels despite concerns about flagging demand and oversupply that threaten the economies of major oil-producing nations.

Government-guided gasoline and other fuel prices have been falling in recent months along with global price levels, and this is giving Beijing room to adjust its tax structure.

China is also benefiting from low levels of consumer inflation, giving the government more room to raise prices.

The consumption tax on unleaded gasoline will rise to 1.12 yuan per liter, while the tax on diesel will increase to 0.94 yuan per liter and the tax on jet fuel also will rise to 0.94 yuan.