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Development and Reform Commission
Issue Date: 24 March 2006
Effective Date: 26 March 2006
1 With the approval from the State Council, the Development and
Reform Commission decision to increase the gasoline price from 26
March 2006 and establish a mechanism to subsidize the minority group
and non-profit making organization.
1.1 Increase the mill
price of gasoline and diesel oil to RMB300/ton and RMB200/ton respectively.
1.2 Increase the selling price of gasoline and diesel oil to RMB250/ton
and RMB150/ton respectively.
1.3 The above price will be effective from mid-night of 26 March
2006.
2 Background information
for fine oil price adjustment
2.1 Mismatch of petroleum demand and supply. The imported petroleum
account for 40% of the total petroleum consumption in PRC.
2.2 The international market price of petroleum increased substantially
2.3 The price of raw oil is US60 per cask but the fine oil price
is US43 per cask.
3 Subsidize the minority
group and the non-profit making organization
3.1 Establish a mechanism to subsidize the minority group and the
non-profit making organization. Government will subsidize the agriculturist,
fishery, forestry who has been influenced by the increase of fine
oil price.
3.2 Establish a price linking mechanism for civil aviation, railway
and public transportation. The transportation fee, which is under
government's monitor, will be increased according to the market
situation.
3.3 The influence on taxi-driving industry is comparatively larger
regarding the fine oil fee adjustment; hence government will keep
adopting the complex measure to reduce the impact:
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