Shanghai gas stations raised the basic retail prices of diesel
and gasoline by more than 5 percent on Saturday following the
central government's decision to increase refined oil prices
nationwide. Industry insiders blamed the price rise to soaring
international crude oil prices.
Prices of three types of gasoline and two types of diesel were
raised in some 700 local gas stations. The basic price of No. 90
gasoline used mostly by sedans is 2.98 yuan (35.90 US cents) a
liter, compared with the former price of 2.82 yuan a liter.
The basic price of No. 0 diesel, which was out of supply in some
areas of Shanghai during the middle of last month, is 3.06 yuan a
liter, up 5.5 percent. Many out-of-town buses and trucks were
refueled in Shanghai as gas suppliers had raised prices in Zhejiang
and Jiangsu provinces.
The Chinese-language Beijing Youth Daily also said
Monday that Beijing gas stations raised their diesel and gasoline
prices following a notice on Saturday from the National Development
and Reform Commission, which is responsible for the pricing of some
strategic commodities.
In both cities, gas stations can sell diesel and gasoline 8
percent higher or lower than basic prices.
"The proportion of the price hike in Shanghai this time is
relatively large," said an executive, surnamed Xue, with Sinopec
Shanghai Oil Products Co.
"The refined oil prices are set by the central government and as
a distributor, we will carry out the decision."
Sinopec Shanghai Oil Products Co is the main distributor of
China Petroleum and Chemical Corp, the country's largest refiner in
Shanghai and owns 547 gas stations in the city. The company
received the order to raise prices early on Saturday morning.
The local gas station operators have been waiting for this news
for at least a month, Xue said.
This is the third time that the central government has adjusted
the retail gasoline and diesel prices. In January, it raised prices
due to surging international oil prices caused by the pending Iraq
war.
The government lowered prices in May to boost spending, to
offset the negative impact of the outbreak of severe acute
respiratory syndrome.
(Shanghai Daily December 8, 2003)