In Beijing on Tuesday, long lines began to form around gas stations across the city. It was one of the first tangible signs of the government’s decision to raise fuel prices, which went into effect Tuesday at midnight.
Although the drivers waiting in line may have been worried about their pocket books, the increases are not all that large: gasoline now costs a maximum of 8,530 rmb per tonne (which is less than one dollar per litre), up from 8,220 rmb per tonnne. Diesel prices are now capped at 7,780 rmb per tonne, from 7,480.
The price hike is a belated bid by the government to bring fuel prices closer in line with global markets, as crude prices this year have risen. Officially, China adjusts fuel prices in step with the international price of crude. But analysts say that today’s increase is smaller than would have been dictated by global markets because of inflationary fears. An official from the National Reform and Development Commission, which governs prices, was careful to point out that the fuel price hike will have minimal impact on the CPI numbers.
