BEIJING, June 22 (Xinhua) -- China's top economic
planner is to control the spread of price increases after it lifted fuel and
electricity prices on Thursday, seeking to avoid fanning inflation.
Local price regulators were urged to tighten price
monitoring and control the price increases of other industrial products, the
National Development and Reform Commission (NDRC) said in a statement on
Saturday.
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Vehicles line up at a gas station before
the midnight deadline for price rises, in Qingdao, east China's Shandong
Province, June 19, 2008. (Xinhua, File Photo)
Photo Gallery>>> |
Producers were encouraged to cut production costs
instead of rising prices, said NDRC. It also suggested local government should
reduce administrative fees paid by producers.
NDRC raised the retail prices of gasoline and diesel
oil by 1,000 yuan (144.9 U.S. dollars) per tonne, effective on Friday, with the
price of aviation kerosene up by 1,500 yuan per tonne.
Retail electricity price will be raised by 0.025 yuan
per kwh starting from July 1. Prices directly related to people's livelihoods,
however, remained unchanged, including public transport, taxis and household
electricity.
NDRC required all departments concerned to firmly
stick to the price adjustment policies and said those who illegally jacked up
prices would be punished.
Many economists worried that the price increases
might fuel inflationary pressure, which showed signs of easing last month.
The consumer price index (CPI), a main gauge of
inflation, eased to 7.7 percent in May over falling food prices. The reading was
8.5 percent in April, up from 8.3 in March and down from the 12-year high of 8.7
percent in February.
Before the energy price increases, market analysts
were expecting the CPI to continue decelerating in June and July.
The price rises would have limited power to stoke the
inflation rate, as for one thing prices directly related to people's livelihood
remain unchanged, Xu Kunlin, deputy head of NDRC pricing department had said.
Cost increases for producers after the rise, however,
would probably not go beyond the production sector, because of the over-supply
situation of consumer products, he added.
China allocates another 3.78 bln yuan
in subsidies to offset fuel hikes
BEIJING, June 20 (Xinhua) -- The Ministry of Finance said
late Friday it allocated another 3.78 billion yuan (548 million U.S. dollars) in
subsidies to help low-income families against the latest fuel price hikes
announced a day earlier.
Of the total, 1.85 billion yuan will go to urban
low-income families, and the rest will be offered to such families in rural
areas, the ministry said. Full story
Chinese official says refiners lost $435 per tonne before
price hike
BEIJING, June 20 (Xinhua) -- Chinese oil refiners suffered
a loss of about 3,000 yuan (435 U.S dollars) for each ton of production before
the overnight price rise. This was due to the widening gap between the frozen
domestic and soaring global prices.
Xu Kunlin, deputy head of the pricing department with the
National Development and Reform Commission (NDRC), made the remark during an
online interview on Friday. Full story
NDRC: Latest fuel, electricity price rise part of "steady"
reform on resources prices
BEIJING, June 20 (Xinhua) -- National Development and
Reform Commission (NDRC) experts told Xinhua on Friday that Thursday's move to
raise fuel and electricity prices was intended to adjust market supply and
demand and better allocate resources with the leverage of prices.
The move was in line with the country's goal to bring the
market more into play in forming prices under macro controls, said the
unidentified NDRC experts. Full story
China to raise prices of refined oil,
electricity
BEIJING, June 19 (Xinhua) -- China's top economic planner
announced Thursday night the country will raise the prices of gasoline, diesel
oil, aviation kerosene and electricity, revealing an unprecedented broad plan to
raise energy prices.
Beginning Friday, the benchmark gasoline and diesel oil
retail prices will be marked up by 1,000 yuan (144.9 U.S. dollars) per tonne,
with the price of aviation kerosene up by 1,500 yuan per tonne. Full story
Chinese shares rally, led by oil
producers on energy price
increase
BEIJING, June 20 (Xinhua) --
Chinese shares jumped 3.01 percent on Friday, after a surprise government
announcement on Thursday night that it would lift fuel and electricity prices,
sparking gains for oil refiners.Full story
