China hikes fuel prices 18%

China will increase gasoline and diesel prices by up to 18% on Saturday, the Financial Times reported. The National Development and Reform Commission announced the increase, Beijing’s second hike since November, along with a rise in electricity tariffs by less than 5%. The increases represent the largest single increase in fuel prices in China in a decade. The announcement helped push crude oil prices down by more than US$4 a barrel as international investors expected the move to ease Chinese demand. However, some observers believe the price hike could lead to increased demand as refiners import more oil and boost sales to make up for existing fuel shortages.