A EUROPEAN Community plan to introduce a carbon tax to reduce oil consumption and pollution may run into heavy weather in Japan, Malaysia and some other East Asian states, whose officials say they would prefer to cut the lead and sulphur contents in oil that is considered harmful.

"We believe that is sufficient to overcome environmental problems," said Azizan Bin Zainal Abidin, chief executive officer of Petronas, Malaysia's state-owned petroleum corporation.

Meanwhile, the Clinton administration intends to impose an oil tax that will raise prices by $3.50 a barrel by 1996. Western oil companies warn, however, that the measure before Congress will hit US exports and this reportedly has the administration wavering.