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-----Original Message-----
From: MeLinda MeLisa <[email protected]>
Sender: [email protected]
Date: Thu, 7 Apr 2011 15:19:12 
To: <[email protected]>
Reply-To: [email protected]
Subject: [StockForex] China Raises Gasoline And Tries To Slow Down The Economic

China Raises Gasoline And Tries To Slow Down The Economic


April 07, 2011

MarketCall.net - China said it will raise prices for gasoline and
diesel fuel by around 5%, bowing to pressure from rising global
crude-oil prices despite concerns about rising inflation in the
world's second biggest economy.

The increase, announced late Wednesday and effective from Thursday, is
the fourth increase since October in fuel prices, which are controlled
by the central government in China. The pace of price increases,
however, has lagged behind increases in global crude oil prices, a
trend that analysts said Beijing will likely maintain going forward to
keep a lid on inflation pressures

Gasoline retail prices will increase 500 yuan ($76.40) a metric ton,
while diesel's retail prices will rise 400 yuan a ton, the National
Development and Reform Commission, an economic planning agency, said
in a statement. The move represents increases of 5.6% and 4.9% over
the current average gasoline and diesel retail ceiling benchmarks.

By comparison, a basket of crude oils that the NDRC tracks has rallied
14% since the last increase in February, according to an estimate by
local energy information portal C1 Energy, which correctly reported
the price moves ahead of the official announcement on Wednesday. The
composition of the NDRC's basket isn't publicly revealed.

After the move, the average gasoline and retail benchmark ceilings
will be 9,380 yuan per ton and 8,530 yuan per ton respectively,
according to Dow Jones Newswires calculations. The gasoline price
works out roughly to the equivalent of around $3.90 per U.S. gallon.

China's price moves demonstrate a difference of approach compared with
South Korea—another major oil importer—where refiners recently
announced cuts in domestic gasoline and diesel prices after coming
under heavy pressure from the government, which is also worried about
inflation and concerned about a lack of competition in the oil-product
markets

China continues to fight its growing inflation and tries to slow down
the economic activity by raising its interest rate.


Source : http://marketcall.net/


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