BEIJING (Commodity Online) : China on Tuesday raised gasoline and diesel fuel prices by 480 yuan per metric ton, first time in 2 months in light of rally in crude oil price.

In a statement issued here, China's top economic planner, National Development and Reform Commission said the benchmark price of gasoline is now 7,100 yuan per metric ton and the price of diesel fuel is now 6,360 yuan per metric ton.



The retail price of gasoline has been increased by 0.36 yuan per liter, while that of diesel fuel has been increased by 0.41 yuan per liter, according to the statement.

The NDRC said in the statement that the oil price adjustment was made in response to recent changes in the international price of crude oil, which climbed more than 4% to around $80 per barrel over the last 22 trading days.

This is the ninth adjustment since China adopted a new fuel pricing mechanism, which came into effect on Jan. 1 and links domestic oil prices to international oil prices in a controlled manner.

The previous price adjustment took place on Sep. 30, when the commission lowered gasoline and diesel fuel prices by 190 yuan per metric ton.

Unlike countries in the advanced economy, prices for oil products in China is under government's control in order to make sure that consumers with low affordability can also buy oil products. However, such control has squeezed refinery margins on refiners for years.

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