It is reported that China has raise fuel price with petrol that will cost CNY 0.8 and diesel CNY 0.92 and electricity charges for commercial units will go up by CNY 0.025 per KWH from July 1st 2008.

The National Development and Reform Commission said the price of aviation fuel has been raised by CNY 1500. The prices of natural gas and liquefied petroleum gas, however, remain unchanged.

The NDRC said urban and rural residents and the farming and fertilizer production sectors have been exempted from the increased electricity charges. Areas in Sichuan, Shaanxi and Gansu hit by the May 12th 2008 quake too have been exempted.

The NDRC said in a statement that, the move is expected to bring some relief to domestic refineries, which have been reeling under losses, and ensure a stable supply of oil in the market. The increase in the prices will benefit domestic oil companies.

As per report the price of crude oil in the international market has crossed USD 130 a barrel. Crude price is linked fully with the international market in China, while prices of refined petroleum products are still controlled by the government.