Gas And Diesel Prices Raised

Domestic gasoline and fuel prices are increasing 7%-8% today, the third increase of the year and another sign that the government feels recovery is well grounded. The National Development and Reform Commission said Sunday that it will raise both domestic gasoline and diesel prices by 400 yuan ($58.58) a metric ton  from the current average 6,530 yuan and 5,790 yuan respectively.

The fuel pricing reforms introduced at the start of the year allows prices to be adjusted when the moving average of a basket of crude changes by more than 4% over 22 working days. As crude has risen by more than 20% since mid-March, fuel prices should have been raised before now. Fears that doing so would have crimped the recovery and a desire to wait until after spring planting season, when diesel usage peaks, probably explain the delay.

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