China's Ministry of Finance and the State Administration of Taxation announced Tuesday on their websites that the government has raised taxes on oil and natural gas resources starting from July 1, 2005.

The "2005-115" notice sets out the different taxes for different oilfields. Qinghai Oilfield has been raised with the highest margin, from 8 yuan per ton to 30 yuan per ton. Meanwhile at the famous Daqing Oilfield, the tax on natural resources has been raised from 8 yuan per ton to 14 yuan, the lowest increase.

For natural gas firms, an additional two yuan is being charged to those who pay 10 yuan or more per ton. An additional five yuan is charged to those that pay less than 10 yuan per ton.

Tax expert Professor Liu Heng said Tuesday that this new tax could hike oil and gas prices for consumers.

He warns that China's domestic oil price has been well below the international level so there is room for further price rises in the near future.