China to raise its domestic oil prices

via WikipediaRetail gasoline and diesel prices will go up 18 percent on Friday, the Financial Times reports, quoting Reuters. That is the first hike in eight months, but leaves the retail prices still heavily subsidized, compared to the market prices.

”Yes it’s real. They are going to raise the prices. We were told to wait in the office to receive the official notice,” said a fuel sales official with top refiner Sinopec Corp.

Car owners elsewhere in the world pay up to four times the retail prices in China and have led in Europe to widespread protest by truck drivers, taxi drivers and cause a drop in the usage of the cars. In China retail prices have been controlled to avoid similar unrest and upward pressure on the inflation.

Update: The BBC reports that also prices for electricity will go up, although it does not mention figures and indicates there might be quite some exceptions.