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Others, more creative solutions to the congestion problem are to increase tax on fuel so that it is more expensive, or make people pay to travel on certain roads such as in the centre of a city or on a motorway.

I want to know what the word "it" means in this sentence.

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"It" refers to the fuel (though it could also be applied to tax)... obviously nothing else in the first part of the sentence can be "expensive".

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