China plans to readjust its resource tax collection method on crude oil from by volume to by price during the 2006-2010 period, Beijing Morning Post quoted Shi Yaobin, director of the Tax Policy Department of the Ministry of Finance as saying.

   At present, China charges 14-30 yuan per ton specific duties on crude oil, which was just lifted from 8-30 yuan/ton in August last   
year.

   Moreover, China started to collect special oil gain levy (usually known as windfall tax) on domestic oil producers in March 26.

   According to international rules, the new tax is also calculated on crude price. It is said that China's three oil giants paid 15.99 
billion yuan of special gain tax in the first half year.

   If the international oil price keeps around 60 US dollars per barrel, PetroChina alone (NYSE:PTR) will have to hand in 30 billion  
yuan of special gain levy for the whole of this year, said Jiang Jiemin, president of PetroChina.

   It is believed that collection of ad valorem duties may further increase Chinese oil producers' tax burden if the oil price keeps at
a high level.

  China's three oil giants are PetroChina, Sinopec and CNOOC.