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China Jacks Up Energy Prices

Gas, electricity see 17%-18% increases as nation cuts subsidies to trim demand

By Nick McMaster,  Newser Staff

Posted Jun 19, 2008 1:13 PM CDT

(Newser) – China will raise domestic energy prices starting tomorrow, the Wall Street Journal reports, with gas and diesel costs jumping 18%. China’s heavily subsidized fuel is still cheaper than international rates, and the move may be an attempt to appease foreign governments, who blame Beijing's intervention for letting demand rise unchecked in the world's second-largest oil consumer.

In  this Tuesday, March 25, 2008 file photo, a worker wipes a diesel filling machine which is not in service at a Sinopec gas station in Hangzhou in east China's Zhejiang province.
In this Tuesday, March 25, 2008 file photo, a worker wipes a diesel filling machine which is not in service at a Sinopec gas station in Hangzhou in east China's Zhejiang province.   (AP Photo)
Facilities operated by a Chinese company are seen on the water in the Chunxiao gas field in the East China Sea on Sept. 29, 2005.
Facilities operated by a Chinese company are seen on the water in the Chunxiao gas field in the East China Sea on Sept. 29, 2005.   (AP Photo/Kyodo News, Kenichi Murakami)
Cars are seen parked in a local gas station, Thursday Sept. 20, 2007 in Beijing China.
Cars are seen parked in a local gas station, Thursday Sept. 20, 2007 in Beijing China.   (AP Photo)
Drivers stop at a local gas station to top up their fuel tanks, Thursday Sept. 20, 2007 in Beijing, China.
Drivers stop at a local gas station to top up their fuel tanks, Thursday Sept. 20, 2007 in Beijing, China.   (AP Photo)
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