China Increases Domestic Fuel prices

Thursday, 7 April 2011 08:04

China has raised retail fuel prices for the second time this year after oil's advance to a 30-month high undermined the government’s efforts to cap costs and cool inflation in the world’s second-largest economy.

Prices rose by as much as 5.8 percent today, with gasoline increasing by 500 yuan ($76) a metric ton, or 0.37 yuan a liter, and diesel by 400 yuan, or 0.34 yuan a liter, the National Development and Reform Commission said in a statement yesterday.

China last increased fuel tariffs by as much as 4.6 percent on Feb. 20, based on a mechanism introduced in December 2008 that allows adjustments when crude costs change more than 4 percent over 22 working days. Consumer prices rose at an annual 4.9 percent pace in February, surpassing the government’s target of 4 percent for 2011.