China's government has shocked millions of its own motorists with severe rises in its subsidized prices for fuels.
From Friday petrol costs 16 percent more, and diesel, 18 percent. The price of aviation kerosene has climbed by 20 percent. The official China Daily newspaper has blamed the hikes on the "soaring price" of crude oil internationally. China last raised its fuel prices eight months ago. Correspondents say China's population had not expected further fuel hikes until after the Olympics but now feared widening inflation. China's main cost of living index hit 7.7 percent in May, close to a 12-year high. China's announcement has triggered a four-dollar drop in the price of crude to around 132 dollars a barrel. Exempted from China's fuel price rises will be its earthquake-hit Sichuan province, according to the newspaper. India and Indonesia recently raised prices and scaled back subsidies.
(Deutsche Welle)
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