THE Chinese Government may cut gasoline and diesel prices by about 15 percent as early as next week, Gordon Kwan, head of China Energy Research with CLSA Ltd., said Thursday.

The average gasoline price at the pump is 50 percent higher than in the United States and such levels are unsustainable amid declining car sales growth, Kwan said.

Falling crude costs and a slowing economy have sparked speculation China will cut fuel prices for the first time in two years and reform energy pricing to ease costs. Changes may be announced in 20 days, domestic media reported Thursday.

A 15-percent cut will leave a refining margin of US$5 to US$6 a barrel for PetroChina Co. and China Petroleum & Chemical Corp., the nation’s two biggest refiners, he said.

(SD-Agencies)