China announces large rise in fuel prices

June 20th, 2008 - 2:00 pm ICT by IANS  

Beijing, June 20 (DPA) China Friday announced a 16 percent hike in petrol price and 18 percent in diesel price. Petrol will now cost 6,980 yuan ($1,015) per ton and diesel will be 6,520 yuan ($949), both up by 1,000 yuan ($145) per ton.

The price of aviation fuel will be raised by 1,500 yuan ($218) per ton to 7,450 yuan ($1,084), the government said.

The official China Daily newspaper said the government was forced to raise its subsidized oil prices for the first time in eight months “because of the soaring price of crude in the international market.”

The National Development and Reform Commission said the rise was expected to help in making up for losses suffered by Chinese oil refineries and ensure stable supplies.

“The increase in the prices will benefit domestic oil companies,” the commission said in a statement.

The government will also raise electricity prices for most businesses by 0.025 yuan per kw from July 1, it said.

The newspaper said earthquake-devastated areas of Sichuan province would be exempt from the hike in fuel prices.

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