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
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)
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(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. (Read more oil price stories.)