OREANDA-NEWS. February 24, 2011. World's second largest oil consumer China again hiked fuel prices in line with global prices. According to country's National Development and Reform Commission (NDRC), it had raised the prices of gasoline and diesel by 350 yuan (USD53.2) a ton.

In a statement, NDRC said the hike came with an increase in the price of international crude oil, but the timing was properly postponed and the rise in price was somehow limited. China adopted an oil pricing mechanism at the start of 2009 that allowed the NDRC to adjust retail fuel prices when the international crude oil prices change by more than four percent over 22 straight working days.

NDRC added that it had considered factors, such as the current price situation, the Spring Festival season and the demand and supply conditions in the oil market. China's consumer price index (CPI), a main gauge of inflation, rose 4.9 percent in January, which was lower than market expectations, but still higher than last December's reading of 4.6 percent.

In 2010, China's dependence on imported oil jumped to 55 percent from 33 percent in 2009, he said. Imports of crude oil rose 17 percent to 239 million tons in the same period. Analysts also expected the price hike could ease the lingering fuel shortage, partly as intermediaries tended to hoard fuel on expectations of price increases.