China raises retail oil prices

The retail price of gasoline will increase by 300 yuan (49 U.S. dollars) per tonne and diesel by 285 yuan, China's top economic planner said Friday.

The adjustment, which will come into effect Saturday, means the benchmark retail price of gasoline will increase 0.22 yuan per liter and diesel will increase by 0.24 yuan, the National Development and Reform Commission (NDRC) said in a statement.

After a previous raise on April 11, international oil prices rose on concerns of a possible acceleration in global oil demand, a lower-than-expected inventory increase in the United States and tensions in the Middle East, analysts said.

Under the current mechanism, which came into effect in March 2013, the prices of refined oil products will be adjusted when international crude oil prices translate into a change of more than 50 yuan per tonne of gasoline and diesel within a window of 10 working days.

The commission reduced oil prices twice in January, raised prices twice in February and then cut prices once in March.