China Raises Gas Prices

CHAN:
Chinese authorities unexpectedly raised retail gasoline and diesel prices by up to 18 percent on Thursday, the country's sharpest ever single increase.

China's first price hike in eight months comes after little progress has been made toward its long-stated goal of raising energy prices to reflect higher costs and encourage greater efficiency.

The rise comes at a time of mounting international pressure for some kind of action to tame soaring global prices.

Neighbors from India to Indonesia have already bowed to the pressures of sky-high oil prices by scaling back subsidies and raising fuel prices. But most people had expected Beijing to resist raising prices until after the Olympics, as policy makers focused on battling inflation and avoiding any hint of social unrest.

The Chinese will now be paying about 75 U.S. cents a liter, still a quarter cheaper than in the United States and about one-third of what British motorists pay. But some Chinese have already felt the pressure of the price increase.

[Mr. Chang, Chinese Motorist]:
"It definitely affects me. Before five yuan seemed like a lot to pay, but now it is on its way to 10 yuan. I will drive my car less and go out less. And the roads will definitely be less busy."

While some hope that the hike in fuel prices could improve air quality and traffic, Beijing's smog-shrouded skyline, only 50 days before the Olympics, is a graphic reminder of how much remains to be done to clear the skies.

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News & Politics

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• China
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• authorities
• energy
• Prices
• gasoline
• diesel

[eastwood24]

and on the lighter side of the news, all of the world's problems are a direct consequence of over-population. World leaders will meet in Zurich next month to work out the details on mass extermination as project 500Million begins