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Panic petrol buying in China as prices rise 18% Angela Jameson Police were called to Chinese petrol stations overnight and Government officials stood guard at the pumps in Beijing, after angry motorists queued to fill up on learning that petrol and diesel prices were to rise by 18 per cent. The surprise decision by the Chinese authorities to remove subsidies prompted drivers to head to petrol forecourts but they were frustrated as many garages refused to serve them until after the price increase took effect at midnight. Prices for gasoline and diesel fuel rose unexpectedly by 1,000 yuan ($145) per tonne each, while aviation fuel was increased by 1,500 yuan a tonne.
(Article continues below) China's fuel subsidies have helped support the country's growing demand for the commodity but it was thought the subsidies would remain in place until after the Olympics, because the authorities have no desire to trigger social unrest. Oil prices fell $4 in overnight trade to $132 in reaction to the surprise news although the oil price steadied and even rose in early trading on Friday. Other Asian economies, including India and Indonesia had already bowed to the pressures of near $140 oil by scaling back subsidies and raising fuel prices. "Global crude prices have been rising sharply and Chinese domestic fuel prices have lagged behind. The price difference has highlighted the contradiction between demand and supply," Chinese state television said, quoting the country's National Development and Reform Commission.
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