China raises retail fuel prices

BEIJING: China will raise the retail prices of gasoline and diesel starting Tuesday, the country's top economic planner said Monday.

Based on changes in international oil prices, the retail prices of both gasoline and diesel will be increased by 105 yuan (about 15.5 US dollars) per tonne, according to the National Development and Reform Commission (NDRC).

It will be the first rise in retail fuel prices this year and comes after five consecutive cuts.

The NDRC price monitoring center predicts that international oil prices are less likely to continue upward movement as the momentum for global economic recovery weakens and oil demand ebbs.

Under the current pricing mechanism, if international crude oil prices change by more than 50 yuan per tonne and remain at that level for 10 working days, the prices of refined oil products such as gasoline and diesel in China are adjusted accordingly.

The NDRC has demanded that major oil companies, including China National Petroleum Corporation, China Petrochemical Corporation, and China National Offshore Oil Corporation, work to ensure stable supply and implement the pricing policy.

The economic planner said it would closely monitor the effects of the current pricing mechanism and make improvements in response to global fluctuations.