China raises fuel prices --- the late move but the right move
The National Development and Reform Commission of China has announced to raise petrol and diesel prices by around 18 percent. The price adjustment was to reduce the gap with soaring international oil prices. The cost of aviation fuel is also going up.
Electricity prices will also be raised from the 1st day of July. It's a good news from the market economists' point of view.
Although the move was late, it's right as it could dampen fuel as well as electricity consumption. The excessive energy consumption could be checked as a result.
After the price hike announcement, paradoxically the price of future oil fell in New York by 3.5 percent to settle at $131 per barrel on the New York Mercantile Exchange after China disclosed plans to raise prices for gasoline and diesel fuel by 16 percent and 18 percent respectively.
Electricity prices will also be raised from the 1st day of July. It's a good news from the market economists' point of view.
Although the move was late, it's right as it could dampen fuel as well as electricity consumption. The excessive energy consumption could be checked as a result.
After the price hike announcement, paradoxically the price of future oil fell in New York by 3.5 percent to settle at $131 per barrel on the New York Mercantile Exchange after China disclosed plans to raise prices for gasoline and diesel fuel by 16 percent and 18 percent respectively.
My Chinese version also at http://wongtc.blogspot.com/2008/06/blog-post_19.html
posted by William, Wong Tak Choi at 9:51 上午
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