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          Economy

          China raises retail prices of gasoline and diesel

          (Xinhua)
          Updated: 2010-04-14 00:01
          Large Medium Small

          BEIJING -?China's top economic planner said late Tuesday it would raise prices of gasoline and diesel both by 320 yuan ($46.88) per tonne from April 14.

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          This comes as the first such move in nearly five months since it raised gasoline and diesel prices both by 480 yuan per tonne in November 2009.

          The benchmark price of gasoline will be 7420 yuan per tonne and diesel 6680 yuan per tonne, according to the National Development and Reform Commission (NDRC).

          The price rises translate into mark-ups of 0.24 yuan and 0.27 yuan per liter, the measurement used at service stations in China.

          China adopted a new oil pricing mechanism at the start of 2009 that allows the NDRC to adjust retail fuel prices when the international crude oil price changes more than four percent over 22 straight work days.

          International crude oil prices had kept rising since mid-February, and the 22-day moving average of global crude oil prices had gone above four percent, said Cao Changqing, head of the NDRC's pricing department.

          The decision was also made based on domestic economic conditions and oil consumers' ability to shoulder price rises, he said.

          After the price change, the government would continue to grant subsidies to farmers and the sectors of fishing, forestry, public transportation. Taxi drivers would also get a temporary subsidy.

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