China's largest oil refiner, Sinopec, has confirmed it will raise liquefied petroleum gas prices by 200 yuan (US$28.8) per ton in June to help offset rising crude oil costs.

Guangzhou Daily quoted insiders as reporting that the company held an internal coordination meeting on Saturday in Ningbo, eastern Zhejiang province, to clear way for the price hike.

Sinopec sent out a notice on May 30 about raising prices for LPG, mostly used for cooking and transport, in June across the nation, earlier reports said.

The average national price has risen to 7,079 yuan per ton on June 5, but prices varied widely across the country.

Sinopec required LPG prices in southern China, where prices are lower than the north, "be kept close to the price of imported gas," which is around 8,000 yuan.

The Chinese government has imposed controls on energy prices for fears that higher fuel costs could fan inflation already near 12-year highs.

But the centralized pricing system and rising international crude costs have left domestic oil majors like Sinopec saddled with huge refining losses and have led to mounting calls for the government to loosen its price controls.

(CRI June 8, 2008)