CHINA TO RAISE PRICE OF GASOLINE, DIESEL OIL, AVIATION KEROSENE.

BEIJING, Nov 1 Asia Pulse - China will raise the prices of gasoline, diesel oil and aviation kerosene by 500 yuan (US$67) per ton, almost a 10 per cent rise, starting from November 1, the country's top economic planner announced on Wednesday.

The average retail prices of gasoline and diesel oil was lifted to 5,980 and 5,520 yuan per ton from 5,480 and 5,020 yuan.

The adjustment was made to shorten the gap between high international crude prices and state-set domestic oil prices, according to the National Development and Reform Commission.

Government-controlled oil prices in domestic market had been blamed for a shortfall of oil supply, as some refineries stop processing to avoid losses while some producers and dealers hoard up oil to gain more profits in the case of possible price hikes, said Liu Zhenqiu, vice director of the price department of the NDRC.

Crude oil prices on the international market has reached US$93.53 per barrel on October 29, up over 80 per cent from the price at the beginning of the year.

"If the crude price is US$80 per barrel, domestic refineries will lose 600 yuan for each ton of crude they process, and 1,000 yuan for each ton of oil they produce," said Liu.

To increase oil supply and keep the domestic market stable, China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (Sinopec) (SEHK:0386, ...