Pump price up as oil surges globally
By Pan Xiaoyi |
April 14, 2010, Wednesday
|
Print Edition
Print Edition
CHINA yesterday raised fuel prices by more than 4 percent to reflect recent increases in global oil costs.
At Shanghai's pumps, the price for widely used 93-octane gasoline jumped 3.9 percent to 6.87 yuan (US$1.06) a liter from 6.61 yuan.
The price of zero-grade diesel in Shanghai increased 4.2 percent to 6.77 yuan a liter from 6.5 yuan.
Retail prices will inevitably vary between regions.
Overall, the prices of gasoline and diesel both went up 320 yuan a ton starting today, according to the National Development and Reform Commission, China's top economic planner.
This equates to a 4.05-percent rise for gasoline and a 4.47-percent increase for diesel.
"The market has been expecting a rise for some time given the rising oil prices in March and April," commodities research company CBI China wrote in a report.
"The increase, however, fell short of calculations based on the country's fuel-price mechanism," it said.
The fuel-pricing mechanism tracks a basket of global crude prices and calls for an adjustment when a 22-day moving average changes more than 4 percent.
However, supply and demand, economic performance and the budgets of consumers and industries are also considered when prices are set.
The 22-day moving average of the basket was US$79.40 a barrel on Monday, up 6.77 percent from the previous adjustment.
"The top planner is trying to strike a balance between the world's market oil prices and the country's inflationary risks as it took into consideration fuel demands in severe drought areas of southwest China and spring farming," CBI China said.
China's consumer price index, the main gauge of inflation, rose 2.7 percent in February, close to the target of containing inflation to below 3 percent this year.
The CPI and other economic date for March and the first quarter are scheduled to be released tomorrow.
The fuel increase was the first since November 9 when the country lifted prices by 480 yuan per ton.
It is the sixth time since the enforcement of new rules in December, 2008, along with four cuts.
"It probably won't make a big difference to me as the cost rise equates to about 50 yuan per month," said Terrence Shao, a 25-year-old engineer. "But a 50-yuan increase each time will not be so easy to take."
At Shanghai's pumps, the price for widely used 93-octane gasoline jumped 3.9 percent to 6.87 yuan (US$1.06) a liter from 6.61 yuan.
The price of zero-grade diesel in Shanghai increased 4.2 percent to 6.77 yuan a liter from 6.5 yuan.
Retail prices will inevitably vary between regions.
Overall, the prices of gasoline and diesel both went up 320 yuan a ton starting today, according to the National Development and Reform Commission, China's top economic planner.
This equates to a 4.05-percent rise for gasoline and a 4.47-percent increase for diesel.
"The market has been expecting a rise for some time given the rising oil prices in March and April," commodities research company CBI China wrote in a report.
"The increase, however, fell short of calculations based on the country's fuel-price mechanism," it said.
The fuel-pricing mechanism tracks a basket of global crude prices and calls for an adjustment when a 22-day moving average changes more than 4 percent.
However, supply and demand, economic performance and the budgets of consumers and industries are also considered when prices are set.
The 22-day moving average of the basket was US$79.40 a barrel on Monday, up 6.77 percent from the previous adjustment.
"The top planner is trying to strike a balance between the world's market oil prices and the country's inflationary risks as it took into consideration fuel demands in severe drought areas of southwest China and spring farming," CBI China said.
China's consumer price index, the main gauge of inflation, rose 2.7 percent in February, close to the target of containing inflation to below 3 percent this year.
The CPI and other economic date for March and the first quarter are scheduled to be released tomorrow.
The fuel increase was the first since November 9 when the country lifted prices by 480 yuan per ton.
It is the sixth time since the enforcement of new rules in December, 2008, along with four cuts.
"It probably won't make a big difference to me as the cost rise equates to about 50 yuan per month," said Terrence Shao, a 25-year-old engineer. "But a 50-yuan increase each time will not be so easy to take."
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