The State Development and Reform Commission lifted prices for gasoline, diesel and aviation kerosene by 500 RMB, or 62.4 US dollars, per ton as of May 24th. It is the second increase this year, and the largest adjustment since 2003, in response to soaring world oil prices.

The soaring price of crude oil on the international market had been above 70 US dollars per barrel for days, but China's current prices are far below those of the international market. In a bid to ensure the steady oil supply in the domestic market and steady growth of the country's overall economy, the Commission decided to increase fuel prices again, according to an official from the Commission.

After the latest rise, the retail price of gasoline and diesel is 6,194 RMB and 5,443 RMB per ton respectively in Guangdong province. The provincial planners issued a series of measures to improve inspection and supervision over prices of processed oil. After the "oil drought" last summer, the province and suppliers now pay more attention to the local oil retail market to ensure consumers don't have to see "Sold Out" signs when they get to the gas station.

On March 26, the price of gasoline has increased by 300 RMB (37.5 USD) per ton while that of diesel oil gone up by 200 RMB per ton. Meanwhile, a mechanism was set up to offer subsidies to affected disadvantaged communities and public service sectors, such as grain growers, using oil-driven fishing boats and urban public transportation firms.

Editor: Yan