Monday, June 1, 2009

20090601 China to raise gasoline, diesel benchmark retail prices

BEIJING -- China will raise gasoline and diesel benchmark retail prices by 400 yuan (US$58.6) per tonne as of Monday, the National Development and Reform Commission announced Sunday.

The benchmark retail price for gasoline would increase by 7 percent and the price of diesel by 8 percent, said a statement on the NDRC website.

The increase was in response to the rising international crude prices under the country's the new fuel pricing mechanism, which took effect January 1, 2009, according to the NDRC.

Under the new mechanism, China's domestic prices are to be "indirectly linked" to global crude prices "in a controlled manner."

NDRC pricing department official Xu Kuning has explained the "indirect link" as "based upon average global crude prices, while taking into account domestic production costs, taxation, and 'appropriate profits' for refiners."

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