06-19-2008, 10:30 PM
<b>China shocks with 18 percent fuel price rise; oil falls</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Prices for gasoline and diesel prices will rise by 1,000 yuan ($145.5) per tonne each effective from midnight, state media reported on Thursday evening.
China will also raise average electricity tariffs by 0.025 yuan/kwh or about 4.7 percent on average, a rise that will primarily affect industrial and commercial users, the NDRC, China's top planning body, said on its website.
The rise, which will be effective from July 1, is its first broad increase in years and will bolster power companies struggling with the soaring cost of coal, which generates some three quarters of China's electricity.
......
China's rapid demand growth was one of the catalysts for oil's surge from $20 six years ago to a record high of nearly $140 a barrel earlier this week.
The move in November took many market watchers by surprise as Beijing has repeatedly vowed to rule out "near-term" price increases to battle high inflation and avoid social unrest barely two months away from the Beijing Olympics.
China also raised jet fuel prices by 1,500 yuan per tonne.
<!--QuoteEnd--><!--QuoteEEnd-->
This is what I was expecting, now oil future will drop. Even strikes in Nigeria will have no effect. India failed to take bold action, in place they opted for pandering.
Now we have to watch China growth and decline in FDI, China started evaluating Yuan under pressure and now 18% increas in energy price. Made in China will be no more cheap.
China will also raise average electricity tariffs by 0.025 yuan/kwh or about 4.7 percent on average, a rise that will primarily affect industrial and commercial users, the NDRC, China's top planning body, said on its website.
The rise, which will be effective from July 1, is its first broad increase in years and will bolster power companies struggling with the soaring cost of coal, which generates some three quarters of China's electricity.
......
China's rapid demand growth was one of the catalysts for oil's surge from $20 six years ago to a record high of nearly $140 a barrel earlier this week.
The move in November took many market watchers by surprise as Beijing has repeatedly vowed to rule out "near-term" price increases to battle high inflation and avoid social unrest barely two months away from the Beijing Olympics.
China also raised jet fuel prices by 1,500 yuan per tonne.
<!--QuoteEnd--><!--QuoteEEnd-->
This is what I was expecting, now oil future will drop. Even strikes in Nigeria will have no effect. India failed to take bold action, in place they opted for pandering.
Now we have to watch China growth and decline in FDI, China started evaluating Yuan under pressure and now 18% increas in energy price. Made in China will be no more cheap.