China hikes gasoline, diesel prices
China has raised the prices of gasoline, diesel oil and aviation kerosene by almost 10 per cent amidst shortages to cut losses for oil firms badly hit by soaring international crude prices.
By PTI |
BEIJING: China has raised the prices of gasoline, diesel oil and aviation kerosene by almost 10 per cent amidst shortages to cut losses for oil firms badly hit by soaring international crude prices.
The unexpected changes to reduce the gap between zooming international prices and state-controlled domestic oil prices were made by China's economic planner, as government tried to wrestle with shortage.
Oil firms had blamed government set prices in domestic market for short supply and the move comes after authorities had strongly resisted pleas for hike fearing it would fuel more price rise and hurt people.
In the first hike in 17 months, the prices have been raised by 500 Yuans per ton, almost 10 per cent, to come into effect from November one, National Development and Reform Commission said.
The average retail prices of gasoline and diesel oil was raised to 5,980 and 5,520 Yuans per ton, up 0.4 and 0.46 Yuan a litre, respectively, NDRC said in a statement.
Shielding the common people, prices of railway tickets, natural gas for civilian use and public transportation are left untouched by government which said it would provide subsidy to taxi drivers.
But, NDRC said prices of railway cargo transportation, aviation passenger services and highway transportation might rise.
Unable to pass on the hike in international prices, several oil refineries had stopped processing to avoid losses and some others hoarded oil to gain more profit in case of increase, Liu Zhenqiu, Vice-president of the NDRC oil department said.
The unexpected changes to reduce the gap between zooming international prices and state-controlled domestic oil prices were made by China's economic planner, as government tried to wrestle with shortage.
Oil firms had blamed government set prices in domestic market for short supply and the move comes after authorities had strongly resisted pleas for hike fearing it would fuel more price rise and hurt people.
In the first hike in 17 months, the prices have been raised by 500 Yuans per ton, almost 10 per cent, to come into effect from November one, National Development and Reform Commission said.
The average retail prices of gasoline and diesel oil was raised to 5,980 and 5,520 Yuans per ton, up 0.4 and 0.46 Yuan a litre, respectively, NDRC said in a statement.
Shielding the common people, prices of railway tickets, natural gas for civilian use and public transportation are left untouched by government which said it would provide subsidy to taxi drivers.
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But, NDRC said prices of railway cargo transportation, aviation passenger services and highway transportation might rise.
Unable to pass on the hike in international prices, several oil refineries had stopped processing to avoid losses and some others hoarded oil to gain more profit in case of increase, Liu Zhenqiu, Vice-president of the NDRC oil department said.
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