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China raises gasoline, diesel prices

(Xinhua)
Updated: 2009-11-09 21:32

BEIJING: China will raise gasoline and diesel prices both by 480 yuan (US$70.28) per tonne from Tuesday, the National Development and Reform Commission (NDRC) announced on its website Monday.

The benchmark price of gasoline will be 7,100 yuan a tonne and that of diesel 6,360 yuan a tonne, according to the NDRC.

The retail price of gasoline will climb by 0.36 yuan per liter and that of diesel will rise by 0.41 yuan per liter.

The country adopted a new fuel pricing mechanism, which took effect on January 1.

Under the pricing mechanism, the NDRC will consider changing the benchmark retail prices of oil products when the international crude price changes more than four percent over 22 straight work days.

"Margins of price fluctuations are within expectation. The price hike can help relieve domestic refiners' pressure from soaring oil refining cost," said Wang Jing, an analyst on petrochemical sector with Orient Securities Company Limited.

The price hike was aimed to protect oil refiners' interests, ensure market supply and help lead rational consumption to promote energy-saving and emission reduction, the NDRC said.

The NDRC would take active measures to help reduce pressure brought to sectors like transportation, the NDRC said.

International crude oil price might continue to rise within this year as demand would continue to grow amid global economic recovery, Wang said.

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