By Michael Eboh with Agency Report
China has announced an increase, effectively Monday, in prices of petroleum products in the country. The increase, the first since September, is amid gains in oil benchmarks since the start of the year.
China’s National Development and Reform Commission said Gasoline will increase by 300 yuan ($48) a metric ton and diesel by 290 yuan a ton
The pump price of 90-RON, China III gasoline in Beijing will rise 3.1 percent to 10,030 yuan a ton, or $4.55 a U.S. gallon, according to Bloomberg calculations from NDRC data.
The price for North Sea Brent crude has increased by 2.7 per cent this year, while U.S West Texas Intermediate added 1.4 per cent in the period.
The NDRC said, “According to recent development in international oil prices, we decided to increase finished oil product prices.
“The government will continue to subsidise the farming and public transportation industries to offset the impact of costlier fuel.”
The NDRC set gasoline and diesel prices under a system that tracks the 22-day moving average of a basket of crudes comprising Brent, Dubai and Indonesia’s Cinta.
The government may adjust fuel rates when the measure changes more than four per cent from the last modification. It has increased 4.73 per cent since prices were cut on Nov. 16.
The NDRC adjusted fuel prices eight times in 2012, raising them four times and cutting them four times.