China raises fuel prices in line with global prices

China has raised its prices of gasoline and diesel fuel by 350 yuan (US$53) a ton, according to China’s National Development and Reform Commission (NDRC). Analysts expect that the price increase could help with the country’s lingering fuel shortage, as previously intermediaries have hoarded fuel in expectations of price increases. China remains the second largest oil consumer in the world, with imports of crude oil rising 17% to 239 million tons in 2010. China’s dependence on imported oil rose from 33% in 2009 to 55% in 2010. NDRC has an oil pricing policy that allows the organization to adjust retail fuel prices if there is a change in international crude oil prices of more than 4% for 22 straight days. The commission stated that it considered different factors in its decision to raise fuel prices, including the rise in crude oil prices, the Spring Festival season and demand and supply conditions in the oil market. (February 24, 2011)