China's fuel tax reform will cut down driving costs, and is to take effect soon, according to Hu Maoyuan, president of Shanghai Automotive Industry Corp, at the launch ceremony of Shanghai GM's new Buick Regal on Monday.

Analysts took it good news as it is able to boost confidence of Chinese automakers.

Hu said the oil price plus tax after reform will be lower than the existing oil price plus fees. He talked with Premier Wen Jiabao about the influence of fuel tax reform when the premier visited Shanghai Automotive Industry Corp. on November 22.

He did not disclose the exact time for the fuel tax to take effect, but saying it is just around the corner.