China to raise price of oil

[lovuian]

http://feeds.bignewsnetwork.com/?sid=1be637341f3710f0

China announced Sunday it is raising wholesale prices for both gasoline and diesel oil.

Gasoline prices will be increased 300 yuan ($37.50) a ton, while diesel will go up 200 yuan ($25) a ton, Xinhua, the official government news agency, said.

The government plans to subsidize oil prices for certain industries, including farmers, commercial fishers, state forestry companies and urban mass transit.

Officials said maintaining an artificially low price for oil had caused large losses for Chinese refineries. As a result, maintaining supplies has been difficult.
more...
Price controls never work...

[existentialist]

1. But China is still going to

"subsidize oil prices for certain industries, including farmers, commercial fishers, state forestry companies and urban mass transit."

that's still a kind of price control.

[lovuian]

2. there still going to have shortages

its quite a lesson China is going to learn the hard way...
This is just going to make them want more access to oil...