China raises petrol prices by eight percent


Beijing : China Thursday raised the price of petrol, diesel and other oil derivatives by about eight percent, saying the move was a response to rising global prices of crude oil.

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The National Development and Reform Commission (NDRC) announced price rises of 500 yuan ($68) per tonne for petrol, diesel oil and aviation kerosene.

It said the rises were to reduce the gap between global crude prices and state-subsidised domestic fuel prices.

“For quite a period of time, certain regions have faced a shortage of oil products or tight supply,” the NDRC said.

“The price increase is expected to reduce refiners’ losses and ensure supplies,” it said.

The rises were expected to “encourage loss-making refiners to step up production and reduce shortages,” the official China Daily newspaper said.

The pump prices of petrol and diesel would increase by about 0.5 yuan per litre, the newspaper said.

The NDRC said the rises would add to China’s growing inflation but that it would try to limit the effect on prices of major food items such as grain, pork and cooking oil.

Airfares and rail cargo rates were expected to increase but public transport fares should not rise, it said.

China’s monthly inflation slowed marginally to 6.2 percent in September after the consumer price index hit an 11-year high of 6.5 percent in August, the government said last month.