China to raise pump prices on strong global oil values

06 April 2011 08:48  [Source: ICIS news]

SHANGHAI (ICIS)--China may lift pump prices on 7 April as global crude oil values rise because of the tense situation in Libya and investors’ worries about oil prices in the near term, industry sources said on Wednesday.

The pump prices of gasoline and diesel are expected to be raised by yuan (CNY) 500/tonne ($76/tonne) and CNY400/tonne respectively, said C1 Energy, an ICIS service in China.

The increase will lift the national average prices of 90-Ron gasoline by 5.63% to CNY9,380/tonne and that of zero pour point diesel by 4.9% to CNY8,530/tonne, both at historical highs, C1 Energy added.

The window for upward adjustment to Chinese oil product retail ceiling prices opened on 22 March after recent increases in international crude, according to C1 Energy.

At 23:04 GMT on 5 April, global Brent crude futures stood at $122.22/bbl, up $1.16/bbl.

The 22-day moving average price of a basket of international crude oil – Brent, Dubai and Cinta – which Beijing tracks to see whether pump price adjustments are necessary, had gained 12% until 22 March. This was far above the 4% that is required for adjustments.

The National Development and Reform Commission (NDRC) usually delays the adjustment for 20 days and is more likely to do so now as it tries to stabilise prices against inflation in China this year, industry sources said.

China has hiked pump prices once in 2011. The retail ceilings were adjusted on 20 February, lifting prices by CNY350/tonne for both gasoline and gas oil.

($1 = CNY6.55)

Additional reporting by Fanny Zhang

By: Amanda Zhang
+65 67804359

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