Home / Environment / Policies and Announcements Tools: Save | Print | E-mail | Most Read | Comment
Gov't to ease ripple effect of energy price hike
Adjust font size:

China's top economic planner is to control the spread of price increases after it lifted fuel and electricity prices on Thursday, seeking to avoid fanning inflation.

Local price regulators were urged to tighten price monitoring and control the price increases of other industrial products, the National Development and Reform Commission (NDRC) said in a statement on Saturday.

Producers were encouraged to cut production costs instead of rising prices, said NDRC. It also suggested local government should reduce administrative fees paid by producers.

NDRC raised the retail prices of gasoline and diesel oil by 1,000 yuan (US$144.9) per tonne, effective on Friday, with the price of aviation kerosene up by 1,500 yuan per tonne.

Retail electricity price will be raised by 0.025 yuan per kwh starting from July 1. Prices directly related to people's livelihoods, however, remained unchanged, including public transport, taxis and household electricity.

NDRC required all departments concerned to firmly stick to the price adjustment policies and said those who illegally jacked up prices would be punished.

Many economists worried that the price increases might fuel inflationary pressure, which showed signs of easing last month.

The consumer price index (CPI), a main gauge of inflation, eased to 7.7 percent in May over falling food prices. The reading was 8.5 percent in April, up from 8.3 in March and down from the 12-year high of 8.7 percent in February.

Before the energy price increases, market analysts were expecting the CPI to continue decelerating in June and July.

The price rises would have limited power to stoke the inflation rate, as for one thing prices directly related to people's livelihood remain unchanged, Xu Kunlin, deputy head of NDRC pricing department had said.

Cost increases for producers after the rise, however, would probably not go beyond the production sector, because of the over-supply situation of consumer products, he added.

(Xinhua News Agency June 23, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name

China Archives
Related >>
- Rise in gasoline charges impacts foreign markets
- Price rise part of resources reform: NDRC
- China raises oil price by US$144.9 per ton
Most Viewed >>
- China refills major lake affected by Olympic water use
- Flood gates open for sand washing
- 10 rare flowers and plants in the world
- Death toll from floods rises to 171 in south China
- Plastic bags to receive micrometer check
Air Quality 
Cities Major Pollutant Air Quality Level
Beijing particulate matter III1
Shanghai particulate matter I
Guangzhou particulate matter I
Chongqing particulate matter II
Xi'an particulate matter II
NGO Events Calendar Tips
- Hand in hand to protect endangered animals and plants
- Changchun, Mini-marathon Aimed at Protecting Siberian Tiger
- Water Walk by Nature University
- Green Earth Documentary Salon
- Prof. Maria E. Fernandez to Give a Lecture on Climate Change
Aid from the world
The Sichuan earthquake prompted a worldwide wave of sympathy. Governments, NGOs, firms and individuals rushed aid to the victims.
Panda Facts
A record 28 panda cubs born via artificial insemination have survived in 2006.
South China Karst
Rich and unique karst landforms located in south China display exceptional natural beauty.
Saving the Tibetan Antelopes
The rare animals survive in the harsh natural environment of the Qinghai-Tibet Plateau.
Laws & Regulations
- Forestry Law of the People's Republic of China
- Meteorology Law of the People's Republic of China
- Fire Control Law of the People's Republic of China
- Law on Protecting Against and Mitigating Earthquake Disasters
- Law of the People's Republic of China on Conserving Energy
State Environmental Protection Administration
Ministry of Water Resources
Ministry of Land and Resources
China Environmental Industry Network
Chengdu Giant Panda Research Base