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Gas, diesel prices up 4 percent per ton [Copy link] 中文

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Post time 2011-2-22 19:00:21 |Display all floors
Starting from Sunday, the nation's gasoline and diesel prices were raised by 350 yuan ($53.25) per ton, or about 4 percent, according to an announcement by the National Development and Reform Commission (NDRC) released late Saturday.
The adjustment would raise the retail gasoline price by 0.26 yuan ($0.04) per liter and diesel by 0.3 yuan ($0.05) per liter, on average.
The current oil pricing mechanism allows the NDRC to adjust retail fuel prices when international crude oil prices change by more than 4 percent over 22 straight working days.
The last price adjustment was made in December 22, by which gasoline and diesel prices was raised by about 300 yuan ($45.64).
And this price adjustment has been postponed by one month in consideration of the transportation pressure during the Spring Festival season.
According to the announcement by the NDRC, the price adjustment aims to guarantee oil supply and at the same time curb consumption.
Mai Wenzhao, an industry analyst with Argus Media, a global energy information provider, said that the 4 percent increase this time is still far lower than the international oil price increase - about 11 percent in the same period.

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Post time 2011-2-22 19:01:23 |Display all floors
But Mai also noted that the current price adjustment could to some extent increase the oil supply in the national market.
The small increase is a boost for suppliers to release supply into the domestic market instead of stockpiling, he said.
"It is possible that suppliers have reduced sales with the previous low profit margin," said Mai.
And the rising gasoline price could also curb the country's excessively fast growth in oil consumption.
Zheng Lidong, who is from Tangshan, Hebei Province, drives a Toyota Prado. He said that the price increase would cost him about 300 yuan ($45.64) more per month.
"I think the price increase is acceptable, but still, I will choose to drive less if the price trends further upward," said Zheng.
Many worried that the current oil price adjustment could further drive up the country's CPI, which was 4.9 percent last month.
But Lin Boqiang, director of the China Center for Energy Economic Research at Xiamen University, believes the current price increase would not cause further inflation yet.
He did admit, though, that other industries may follow suit by showing a very moderate price increase.
"The current adjustment is not significant enough to cause inflation, since oil prices account for a very small percentage of CPI," said China Center for Energy Economic Research's Lin.
To avoid a possible price surge in the transportation system, the NDRC has ordered railways, urban public transportation systems and other passenger traffic systems not to raise prices.

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