China raises gasoline, diesel prices

• Source: xinhua
• [09:42 June 30 2009]
• Comments

China raised gasoline and diesel prices by 600 yuan (about $87.8) per tonne, starting 12 am Tuesday.

The increase raised the price for gasoline by about 0.45 yuan per liter, or 8.6 percent, and the price of diesel by about 0.51 yuan per liter, or 9.6 percent, said the National Development and Reform Commission (NDRC) in a statement on its Web site.

It was the third oil price adjustment this year. The NDRC raised the pump prices of gasoline and diesel by 400 yuan per tonne May 3, or 7 percent and 8 percent, respectively.  

The adjustment was in response to "recent international oil price fluctuation" under the country's new fuel pricing mechanism, as international crude prices kept rising, said the statement.

According to the new mechanism, China's domestic prices are to be "indirectly linked" to global crude prices "in a controlled manner."

Under the pricing mechanism, China would consider changing benchmark retail prices of oil products when the international crude price rises or falls by a daily average of 4 percent over 22 working days in a row.

Oil prices settled at 69.16 dollars a barrel on the New York Mercantile Exchange Friday, registering a 4.2 percent rise from the price of 66.31 dollars a barrel when the last adjustment took place May 31.