Price hike 'will raise energy efficiency' By Liu Li (China Daily) Updated: 2006-05-25 08:56
The latest price rises for gasoline, diesel and aviation fuel by 500 yuan
(US$62.5) per ton take them closer to international market standards; and will
save energy and promote fuel efficiency, planning officials said
yesterday.
The increases will also contribute to sustainable development,
National Development and Reform Commission (NDRC) officials said.
The
price hikes, effective yesterday, are the ninth for refined oil products since
July 2003; and the 10-per-cent rise is the highest since then.
"Higher
prices on oil products will encourage efficiency," said Zhang Guobao,
vice-chairman of NDRC, at a seminar; while Niu Li, an economist with the State
Information Centre, said they would bring domestic oil prices more in tune with
the world market.
Lower domestic prices have resulted in losses for oil
refiners and encouraged consumer wastage, he noted.
An NDRC statement
said prices of processed oil in China are far below the international levels as
the price of crude hovers around US$70 a barrel.
"The unreasonably
low price was a key reason behind high resource consumption," an NDRC official
said yesterday.
China's average resource consumption for per unit of GDP
(gross domestic product) was 3.4 times the world average in 2004, statistics
show.
Streets near gas stations were jammed on Tuesday night as car
owners queued to grab the last chance to buy cheaper fuel.
"I didn't see
the same scene the last time fuel prices were raised," said He Jun, a senior
resource analyst.
The last price rise was on March 26, when the price of
gasoline was raised by 300 yuan (US$37.5) per ton and diesel by 200 yuan (US$25)
per ton.
The retail price of 93-octane gasoline is now 5.09 yuan (64 US
cents) per litre, 0.44 yuan (5 US cents) higher.
But it is still way
below the price in the UK, which hit 1 pound (15 yuan) in parts of the country
this month.
"I will have to pay 50 yuan (US$6.2) more a month on gasoline
after this rise," said Chen Yi, who earns 5,000 yuan (US$620) a month and is in
the publishing industry.
Chen said gasoline was still affordable, but
said he would think twice before getting behind the wheel.
Car dealers
predict that more people would choose to buy small-engine cars to save fuel
costs or hesitate to buy.
According to an online survey on www.sina.com.cn, one of China's leading
portals, nearly 87 per cent of the 80,000 surveyed said they would reconsider
plans to buy a car.
Huang Shan, a Beijing resident, said he would put off
his car purchase plan. "As taxi fares have also risen, I think the best way is
to take public transport," he said. Xinhua contributed to the
story. (For more biz stories, please visit Industry Updates)
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