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Coal price likely to dip in second half
By Wang Ying and Sun Xiaohua (China Daily)
Updated: 2005-07-25 05:41

China sold 36.4 million tons of coal overseas in the first half of the year, a fall of 18 per cent year-on-year.

The government is introducing more market mechanisms to energy prices such as coal and oil.

Gasoline price hike

As crude prices still maintained a bullish trend in the market, the National Development and Reform Commission on Saturday further increased the retailing benchmark price for gasoline by 300 yuan (US$37) per ton, while for diesel it was raised by 250 yuan (US$31) per ton.

Retail prices went up accordingly. In Beijing, the price of gasoline increased by a margin of between 0.29 yuan (3.6 US cents) and 0.33 yuan (4.1 US cents) per litre.

The retail price of diesel went up by 0.28 yuan (3.5 US cents) per litre, causing some drivers to fill up their cars before the prices changed.

The Beijing News quoted a man surnamed Zhang who owned a car and worried about the cost of driving in the future. After the price increases, he will pay another 10 yuan (US$1.23) each time he refuels.

Many taxi-drivers said they felt the burden of making a living had become even heavier. One said that if he drives 250 kilometres on a hot summer day with the air-conditioning on, he will use at least 25 litres of fuel. So, now he will pay an extra 8 yuan (98 US cents).

"With the fierce competition in the taxi industry, increasing gas prices is like 'adding fuel to the flames' for our business," the taxi driver said.

International oil prices rose sharply recently, but domestic oil still costs less than imported crude oil. In order to guarantee the supply of domestic oil and improve energy efficiency, China decided to raise prices, an official of the State Development and Reform Commission said to Xinhua News Agency.

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