China to increase fuel prices

Beijing announced that it will increase gasoline and diesel prices in response to rising global crude costs, Bloomberg reported. The ceiling on the price at which gasoline can be sold to consumers will rise to RMB390 (US$61) per metric ton while the ceiling on diesel will rise to RMB370 (US$58) per metric ton, China’s National Development and Reform Commission said in a statement on its website. Motorists in Beijing will pay about 4.3% more at the pump, or approximately US$4.27 per US gallon, according to Bloomberg. This is the first time the country has raised fuel prices since March. Prices were cut three times between May and July in the face of slower economic growth. The increase likely came about “because August is not a month of peak consumption and inflation pressure has eased,” said C1 Energy, a Shanghai-based commodity research firm. Higher prices are also likely to lift the profits of China’s state-owned oil companies.