China hikes oil prices echoing the global jump
China hiked the prices of finished oil products by around 10% Wednesday to reflect crude oil price rises on the international market.
The retail price increased correspondingly. The widely-used No 93 gasoline sold at 3.66 yuan per litre at the Beijing market, up from the previous 3.46 yuan per litre. The move is the third straight rise of oil price by the government in the year, following hikes in in March and in middle May.
Economists cautioned that the gas price rise is likely to add further weight to inflation pressures on the overall economy.
Crude oil prices in international markets have risen more than 40% in the past six months amidst worries of terrorist attacks on oil supply installations in the Middle East, increasing global demand and hiking uneasy situations in some oil producing countries.
The crude price reached nearly US$50 a barrel in New York last Friday, and in the London Brent futures market, oil for delivery in 2005 jumped above US$40 a barrel.
Oil supply will be sufficient in Beijing, Shanghai and all Chinese cities,
after the price rise, said officials from SINOPEC and CNPC, China’s two largest