China hikes retail fuel prices by $53 per ton
Shanghai. February 21. INTERFAX-CHINA - The National Development and Reform Commission (NDRC) announced Feb. 19 that it intended to raise the retail price of gasoline and diesel by RMB 350 ($53.27) per ton on Feb. 20.
The NDRC said the hike was initially planned for Jan. 21 but was delayed so as not to affect public transportation during the Chinese New Year.
On Dec. 22, 2010, the prices of gasoline and diesel were increased by RMB 310 ($47.18) and RMB 300 ($45.67) per ton, respectively.
Noting government concern over inflation, the NDRC said the present hike is less than the crude oil price adjustment from between Dec. 22, 2010 and Jan. 21, 2011.
Zhong Jian, an oil analyst with Oriental Oil Gas Net, told Interfax that price hike would likely boost the refining margin of domestic refineries from RMB 50 ($7.61) per ton at the beginning of February to RMB 400 ($60.88) per ton. Zhong said the move will give refineries greater incentive to produce sufficient fuel supplies and thus prevent shortages.
-TW