Needed price hikes

It was not an easy decision for the government to make to raise fuel and electricity prices while the country's consumer inflation remains within striking distance of 12-year highs.

However, the increase in oil and power prices the National Development and Reform Commission announced on Thursday will benefit not only loss-making domestic oil-refiners and power plants, but more importantly, it will also give a badly needed boost to the national drive for energy conservation.

Petrol will cost 0.8 yuan ($0.12) and diesel 0.92 yuan more for a liter from Friday, and electricity charges for commercial units will go up by 0.025 yuan per kwh from July 1.