China raises fuel prices for 4th time
Thursday, 3 September 2009
SHANGHAI, Sept 2 (AFP): China said it was raising petrol and diesel prices by up to five percent from Wednesday, the fourth hike this year, setting new highs in some areas as it moves closer to a market-based pricing system.
The average maximum retail price for petrol is to be raised by 300 yuan (43.9 dollars) per tonne, or 4.2 percent, to 7,610 yuan, China's top planning agency, the National Development and Reform Commission (NDRC), announced.
The maximum retail price for diesel will be raised by 4.6 percent to 6,870 yuan per tonne, it said in a statement.
The price hike was the sixth adjustment of domestic fuel prices so far this year-four hikes and two drops-since the government put in place a more market-based pricing mechanism.
The NDRC said the new price increase was "in line with recent movements in international crude prices".
New York's main contract, light sweet crude for October delivery, was 52 cents higher at 68.57 dollars a barrel in Asian trade on Wednesday.
In late July, fuel prices were cut by nearly three percent, in line with the falling price of crude.
The latest price hike brought petrol prices to record highs in some regions, state media said.
Petrol will cost 6.43 yuan (94 US cents) per litre in Beijing, 3.7 percent higher than the previous peak hit in June 2008, the China Securities Journal reported, citing Niu Li, an economist with the State Information Centre, a think tank linked with the NDRC.
The government said in May that it could adjust domestic fuel prices when the moving average of a basket of international crudes changed more than four percent over a period of 22 working days.
The average maximum retail price for petrol is to be raised by 300 yuan (43.9 dollars) per tonne, or 4.2 percent, to 7,610 yuan, China's top planning agency, the National Development and Reform Commission (NDRC), announced.
The maximum retail price for diesel will be raised by 4.6 percent to 6,870 yuan per tonne, it said in a statement.
The price hike was the sixth adjustment of domestic fuel prices so far this year-four hikes and two drops-since the government put in place a more market-based pricing mechanism.
The NDRC said the new price increase was "in line with recent movements in international crude prices".
New York's main contract, light sweet crude for October delivery, was 52 cents higher at 68.57 dollars a barrel in Asian trade on Wednesday.
In late July, fuel prices were cut by nearly three percent, in line with the falling price of crude.
The latest price hike brought petrol prices to record highs in some regions, state media said.
Petrol will cost 6.43 yuan (94 US cents) per litre in Beijing, 3.7 percent higher than the previous peak hit in June 2008, the China Securities Journal reported, citing Niu Li, an economist with the State Information Centre, a think tank linked with the NDRC.
The government said in May that it could adjust domestic fuel prices when the moving average of a basket of international crudes changed more than four percent over a period of 22 working days.