China may increase fuel prices on Aug 10

China may raise gasoline and diesel prices in August for the first time since March after crude costs rose, a commodity researcher said.

Prices may be increased by 350 yuan ($55) a metric ton on Aug 10, C1 Energy said on its website on Tuesday. The cost of the basket of crude oil tracked by the National Development and Reform Commission will have risen more than 4 percent by then, reaching the threshold at which tariffs can be changed, C1 said.

Brent oil, one of the grades in the basket, has jumped 8.7 percent in July, snapping a run of three monthly declines. China has reduced fuel prices three times since May to levels last seen in December 2010. The last reduction was on July 11, when rates were cut by as much as 4.8 percent.

Shanghai-based C1 has in the past correctly reported adjustments before official announcements.

Agencies - China Daily