China raises prices of oil and fuel

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Source: CCTV.com | 06-20-2008 16:32

China has raised prices of gasoline, diesel and aviation fuel by over 8 percent beginning on Friday. The country’s chief economic planning body -- the National Development and Reform Commission -- says the drastic rise in energy prices was made to ensure supplies in the country. It also aims to narrow the gap between fuel prices in China and continuously rising international crude prices.

China has raised prices of gasoline, diesel and aviation  fuel by over 8 percent beginning on Friday.

For the first time in over a year, China has raised the wholesale price of gasoline and diesel.

Taxi-river Zhao Yuxiang found the price of gas per liter has risen 0.8 yuan. It was 5.4 yuan per liter the day before, and now it's 6.2.

Zhao Yuxiang said, " The rising prices could affect our work. So, we hope the government's commitment to reimburse us will be carried out."

Zhao used to spend 220 yuan for 40 liters, but now he has to pay an additional 40 yuan to get the same amount of gas.

But it's not only car users that have been hurt by the price hike. Oil-dependent sectors, such as transport and building will also be affected. And these sectors, in turn, will pass on these new costs to others. However, some others, like oil refining, are beneficiaries.

Professor Zhou Dadi from the National Development Reform Commission says he thinks the current price hikes are reasonable and necessary.