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Car owners could pay less for gas after the government adjusts the retail fuel tax from January 1.

The retail gas price may drop rather than increase after the fuel price reform is implemented, said Xu Kunlin, deputy head of the pricing department of the National Development and Reform Commission (NDRC).

"We made it clear while devising the reform scheme that people would not have to pay more at the pump even if a higher retail fuel consumption tax was introduced," Xu said.