China hikes retail fuel prices

China has raised retail gasoline and diesel prices by around 4 to 4.5 percent from Wednesday. It's the first increase in 5 months, taking prices up to track higher crude costs.

China adopted a new oil pricing mechanism in 2009 that allows it to adjust retail fuel prices when the moving average of global crude shifts more than 4 percent. But the price increase is unlikely to affect low income groups. The National Development and Reform Commission says, subsidies will continue to be given out to those in the agricultural, forestry, public and rural transportation sectors. Temporary financial aid will also be offered to taxi drivers.