On Friday new retail prices for gasoline, diesel and jet fuel came into effect in China. From Asia Times:
The retail price for petrol was raised 16.7% to 6,980 yuan (US$1,014) a tonne, effective on Friday, by the National Development and Reform Commission (NDRC), which sets the mainland’s economic policy. The diesel price was raised by 18.1% to 6,520 yuan a tonne and the wholesale price of jet fuel was pushed up 25.2% to 7,450 yuan a tonne. Retail electricity prices were raised by 0.025 yuan per kilowatt-hour, except for northwest China’s Xinjiang Uygur Autonomous Region and earthquake-hit areas, from July 1.
News of the price increase in China might, however, make energy a little bit cheaper for the rest of the world.
International oil prices fell sharply after the Chinese government announcement, with crude oil futures in New York falling 2% to US$133.97 a barrel by 11.30 pm (Hong Kong time) on Thursday, and falling further to $132.50 on Friday afternoon.
Though fuel in China is still dirt-cheap, the price hike caused turmoil in gas stations. The Guardian reports:
At least one station told customers that it would shut for repairs until the price hike took effect at midnight, prompting an altercation between staff and angry motorists. “You guys make a huge profit and get high prices. We consumers are pitiful,” said a Shanghainese waiting to fill his Volkswagen Santana.
Al Jazeera also covered the issue and summed up the main points in a short video clip:
