China passes second fuel hike in six weeks

China raised its gasoline and diesel prices Tuesday for the second time in less than six weeks following a rise in the global market price of crude oil, Bloomberg reported. Prices will increase by RMB600 (US$95) per metric ton; retail gas prices will increase by up to 6.6% and diesel as much as 7.2%, according to Bloomberg. China’s National Development and Reform Commission, the country’s economic planner, said that motor fuel will rise by RMB0.44 per liter and diesel by RMB0.51 per liter. While China’s petrol refiners such as Sinopec (SNP.NYSE, SNP.LSE, 600028.SH, 0386.HKG) and PetroChina (PTR.NYSE, 601857.SH, 0857.HKG) have long lobbied the government to increase fuel prices, the move comes much sooner after the last price hike on February 8 than many analysts had expected. “It signals the official ending of China’s anti-inflation campaign,” said Gordon Kwan, Hong Kong-based head of regional energy research at Mirae Asset Securities.