China may raise retail oil prices for a second time this month as a new window for adjusting gasoline and diesel prices opens on Friday, Gasoline and diesel retail prices are likely to be raised by more than 300 yuan (49 U.S. dollars) per tonne, or 0.2 yuan per liter, according to a report based on data.
China's consumer inflation rose 2.7 percent year on year, up 0.6 percentage points from a month ago.
Despite the hefty fuel price increase, its impact on downstream industries is not expected to last long, analysts said.Under the country's new pricing regime, which came into effect in April, domestic fuel prices are adjusted when international crude prices reflect a change of more than 50 yuan per tonne for gasoline and diesel over a period of 10 working days.
China is expected to have a larger impact on global oil prices with its increasing import,the government should shorten the adjustment window and ensure that domestic prices kept pace with global prices in order to reduce speculation.Since the new pricing mechanism took effect at the end of 2014, domestic oil prices have risen seven times and declined five times.
