CNPC Chairman calls for oil price rise |
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(news.flanders-china) -- China should raise petrol and
diesel prices to reflect the recent surge in crude oil prices, Jiang Jiemin,
Chairman of both China National Petroleum Corporation (CNPC) and PetroChina said
.
Any price increase would be the second so far this year and would
raise China’s fuel prices to fresh highs, raising concerns about inflation.
According to China’s fuel pricing formula, the government may consider lifting
fuel prices if a moving average price for a basket of crudes rises over 4% in a
month. But the Chinese government, worried about inflation, often postpones
raising prices, meaning refiners often run at a loss as they are unable to pass
on any increases in their crude oil costs to consumers.
China last
raised petrol and diesel prices by 3% to 4% on February 8. Crude oil prices have
gained about 9% in the following month, but the government has held off
announcing any changes during the annual session of the National People’s
Congress (NPC), which ended on March 14. Some analysts said the government could
raise petrol and diesel prices by at least CNY400 to CNY500 a ton, or about
5%. |
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