Prices of China's oil products may jump later this year when collecting fuel oil taxes begins likely on October 1, domestic newspaper China Business reported.

The report cites an insider as saying the State Council has already approved a plan by the Ministry of Finance to introduce a fuel oil tax, which industry sources say will likely start being collected in October.

This will likely push up prices for oil products, as a precondition for applying the tax is domestic oil product prices should be in line with the international market.

Staff from China Petroleum & Chemical Corp, China's largest crude oil refinery enterprise, say the refiner is suffering from the rising international oil prices.

"For refining each extra barrel of imported crude oil, we face a loss of at least ten dollars," one anonymous source said.

When the National Reform and Development Commission decided to lower oil product prices six months ago, international crude oil price stayed below 60 dollars for a long period.

However, the current international oil price of more than 70 dollars is hurting oil companies, drving them to push for a new round of price rises.