::China Will Raise Fuel for the Second>>

Go Finance Reporting in CHINA - Following the rise of world oil prices, the Chinese government decided to raise retail fuel prices for the second time this year. The price of oil in China reached its highest level in 30 months.

The increase in fuel prices this happened exactly two days after China raised interest rates for the fourth time since October yesterday. This step is done by the government to tame inflation that exceeded the target.

National Development and Reform Commission of China, was quoted by Bloomberg, on Friday (04/08/2011) says the price of gasoline rose USD76 per metric ton, or 0.37 yuan per liter, diesel prices by 400 yuan or 0.34 yuan per liter. As crude oil prices are expensive so feared by the country's second largest oil consuming after this American.

Head of energy research at Mirae Asset Securities in Hong Kong, Gordon Kwan, said that China has raised domestic gasoline and diesel prices to record highs. "This step is like pulling teeth in the middle of the government anti-inflation campaign," he said.

Fuel oil in China rose 4.6 percent on February 20, when in December 2008 has introduced a new mechanism that allows adjustment when the cost of crude oil rose more than four percent for 22 days. Consumer prices rose by 4.9 percent per year rate in February, exceeding the government target of four percent for 2011.

China Petroleum & Chemical Corp. (600 028), which requires oil refining company's largest, recorded an increase of 1.5 percent to HKD 8.14. Sinopec Shanghai Petrochemical Co. which rose 8.4 percent to HKD 3.76. PetroChina Co. fell 0.7 percent to 12.14. Hang Seng Index (HSI) decreased less than 0.1 percent.

According to JP Morgan Chase & Co., rising oil prices reduce the number of China's GDP of USD10 USD2, this amount is the worst since October 2008. According to calculations by Bloomberg, after this adjustment, gasoline in China will be sold at an average of USD1, 05 per liter. In the UK alone sells for $ 2 gasoline, 17 liters in and 97 cents per liter in the U.S..

Oil analyst Brynjar Eirik Bustnes and Sophie Tan of JP Morgan in Hong Kong said that similar to the first increase, rising oil prices is not fully compensate for higher prices.

Crude oil rose to the level of USD108, 83 per barrel in New York yesterday. Following concerns about conflicts in Africa and the Middle East, was allegedly going to reduce supply. Global oil prices will remain high.

"Actually the government does not want to raise prices, but the events in the Middle East to force China into a corner," said Ben Simpfendorfer, publisher of China's insider and former chief economist at Royal Bank of Scotland Group Plc. He also added that the move to raise fuel is a minor setback in the fight against inflation.

Crude oil prices in New York since February 15 rose by 29 percent. Unrest in North Africa and the Middle East and spread to Libya became one of the main causes. (GoFinance)