China to Raise Gasoline Price
Source: www.chinaview.cn 10/31/2007
China will raise the prices of gasoline, diesel oil and aviation kerosene by 500 yuan per ton, almost a 10 percent rise, starting from November 1, China’s economic planner announced on Wednesday.
The average retail prices of gasoline and diesel oil was lifted to 5,980 and 5,520 yuan per ton, up 0.4 and 0.46 yuan per liter respectively.
The adjustment was made to shorten the gap between high-flying international crude prices and state-set domestic oil prices, according to the National Development and Reform Commission.
The government-controlled oil prices in domestic market had been blamed for a shortfall of oil supply, as some refineries would stop processing to avoid losses while some producers and sellers would hoard up oil to gain more profits in the case of possible price hikes, said Liu Zhenqiu, vice director of the price department of the NDRC.
Crude price in international market has reached 93.53 U.S. dollars per barrel on October 29, up by over 80 percent from the price at the beginning of the year.
“If the crude price is 80 U.S. dollars per barrel, domestic refineries will lose 600 yuan for each ton of crude it process, and 1,000 yuan for each ton of oil it produce,” said Liu.
China will also raise the price of natural gas for automobiles and industrial production, according to the NDRC. (one U.S. dollar equals to 7.48 yuan)
