Local gas pump prices jump by 12%
By Leo Zhang |
November 10, 2009, Tuesday
|
Print Edition
Print Edition
CHINA yesterday raised fuel prices by more than 7 percent to reflect recent increases in global oil costs.
But pump prices in Shanghai jumped even higher as the city also adopted a new emission standard to help clean up its air.
The prices of gasoline and diesel both went up 480 yuan (US$70) a ton starting today, the National Development and Reform Commission said in a statement. That produced a 7.25 percent rise for gasoline and an 8.16 percent hike for diesel.
At Shanghai's pumps, the price for widely used 93-octane gasoline jumped 12 percent to 6.61 yuan a liter from 5.9 yuan due to the effects of the national increase and the local adoption of National IV emission standards to improve fuel quality.
The price of zero-grade diesel in Shanghai increased 15.2 percent to 6.5 yuan a liter from 5.64 yuan. Rates for other types of fuel also rose faster in Shanghai than in other parts of the country.
"The price hikes were justified given rises in oil prices in September and October," said Luo Mingwei, a West China Securities Co analyst. "They can help refiners cover rising expenses."
The increase was the first since September 2 when the country hiked fuel prices by 300 yuan per ton. China last adjusted fuel prices on September 30, lowering the rates by 190 yuan per ton.
China in December implemented a new fuel pricing mechanism that tracks a basket of global crude prices and calls for an adjustment when a 22-day moving average changes more than 4 percent.
The NDRC has also said that it will consider supply and demand, economic performance and the budgets of consumers and industries while setting prices.
Cleaner skies
The crude oil price in the United States now stands at around US$80 a barrel, compared with US$67 a barrel in late September, according to data provided by Reuters.
Shanghai started to enforce the National IV emissions criteria, equivalent to Euro IV, on November 1 but did not hike retail fuel prices at that time. The government had said the increase would come on top of a hike in fuel prices nationwide.
Beijing introduced the National IV standards last year before the Olympic Games. The initiative by Shanghai is part of the city's effort to clean up the air ahead of the Shanghai World Expo, which starts in May.
The National IV upgrade will be put in place across the county by the start of 2011 at the latest, according to the central government's schedule.
"I may drive less and take public transportation more often due to the fuel price increases," said Eric Shao, a 30-year-old investment consultant. "But if it can really improve the city's air quality, I'm willing to do this."
Shanghai on October 11 hiked taxi fares by an average 10 percent as cabs were required to use 93-octane gasoline instead of the cheaper 90-octane gasoline starting November 1.
The local bureau of the NDRC said yesterday that the increase in taxi fares last month could withstand a maximum price of 6.43 yuan per liter for 93-octane gasoline.
As the current price exceeds the ceiling, the local government and taxi firms will continue to subsidize taxi drivers temporarily, the bureau said. Authorities did not specify the amount of the subsidy.
The city government has said that the subsidy to taxi drivers that had been in place for more than two years will eventually be terminated as it is offset by fare increases.
But pump prices in Shanghai jumped even higher as the city also adopted a new emission standard to help clean up its air.
The prices of gasoline and diesel both went up 480 yuan (US$70) a ton starting today, the National Development and Reform Commission said in a statement. That produced a 7.25 percent rise for gasoline and an 8.16 percent hike for diesel.
At Shanghai's pumps, the price for widely used 93-octane gasoline jumped 12 percent to 6.61 yuan a liter from 5.9 yuan due to the effects of the national increase and the local adoption of National IV emission standards to improve fuel quality.
The price of zero-grade diesel in Shanghai increased 15.2 percent to 6.5 yuan a liter from 5.64 yuan. Rates for other types of fuel also rose faster in Shanghai than in other parts of the country.
"The price hikes were justified given rises in oil prices in September and October," said Luo Mingwei, a West China Securities Co analyst. "They can help refiners cover rising expenses."
The increase was the first since September 2 when the country hiked fuel prices by 300 yuan per ton. China last adjusted fuel prices on September 30, lowering the rates by 190 yuan per ton.
China in December implemented a new fuel pricing mechanism that tracks a basket of global crude prices and calls for an adjustment when a 22-day moving average changes more than 4 percent.
The NDRC has also said that it will consider supply and demand, economic performance and the budgets of consumers and industries while setting prices.
Cleaner skies
The crude oil price in the United States now stands at around US$80 a barrel, compared with US$67 a barrel in late September, according to data provided by Reuters.
Shanghai started to enforce the National IV emissions criteria, equivalent to Euro IV, on November 1 but did not hike retail fuel prices at that time. The government had said the increase would come on top of a hike in fuel prices nationwide.
Beijing introduced the National IV standards last year before the Olympic Games. The initiative by Shanghai is part of the city's effort to clean up the air ahead of the Shanghai World Expo, which starts in May.
The National IV upgrade will be put in place across the county by the start of 2011 at the latest, according to the central government's schedule.
"I may drive less and take public transportation more often due to the fuel price increases," said Eric Shao, a 30-year-old investment consultant. "But if it can really improve the city's air quality, I'm willing to do this."
Shanghai on October 11 hiked taxi fares by an average 10 percent as cabs were required to use 93-octane gasoline instead of the cheaper 90-octane gasoline starting November 1.
The local bureau of the NDRC said yesterday that the increase in taxi fares last month could withstand a maximum price of 6.43 yuan per liter for 93-octane gasoline.
As the current price exceeds the ceiling, the local government and taxi firms will continue to subsidize taxi drivers temporarily, the bureau said. Authorities did not specify the amount of the subsidy.
The city government has said that the subsidy to taxi drivers that had been in place for more than two years will eventually be terminated as it is offset by fare increases.
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