Beijing: China will raise petrol and diesel prices by more than 16 per cent from tomorrow to reduce the gap with soaring international oil prices, the official Xinhua news agency reported, quoting the country's top economic planner.
Petrol and diesel prices would go up by 1,000 yuan (145 dollars) per tonne while aviation kerosene would increase by 1,500 yuan a tonne, the National Development and Reform Commission announced late today, according to Xinhua.
Retail prices of petrol and diesel would be hiked to 6,980 yuan and 6,520 yuan a tonne, up more than 16 percent and 18 percent. The rises would mean an increase of 0.8 yuan and 0.92 yuan a litre (44 cents and 51 cents a US gallon) for petrol and diesel, Xinhua said.
Prices were raised to ensure supplies by reducing the gap between soaring international crude prices and state-set domestic oil prices, the commission said.
Electricity prices would also be raised by 2.5 cents per kilowatt hour from July 1 but urban and rural residents and the farming nd fertiliser production sectors would be exempt, as wold the three provinces hit by last month s quake, it said.
The Chinese government, which has made taming inflation its top economic priority, imposes strict controls on energy prices due to fears that higher fuel or power costs could fan inflation already near 12-year highs.
But the centralised pricing system and rising international crude costs have left domestic oil majors such Sinopec saddled with huge refining losses and led to mounting calls for the government to loosen its price controls.
Source :
PTI
