Macroeconomics - Supply and Demand

Business commentary China Raises Retail burn down Prices to Help serene Economy October 26, 2010, 6:09 AM EDT By Bloomberg News (Closes shares.) Oct. 26 (Bloomberg) -- China, Asias biggest crude oil consumer, increased retail gasoline and diesel engine prices by 3 percent today as part of government measures to settle bulge out the economy and meet energy-saving targets. The ceiling for gasoline prices pull up stakes alternate by 230 yuan ($34.50) a metric ton and diesel prices will gain 220 yuan a ton, the National study and Reform Commission, the top economic planner, said in a avouchment on its website yesterday. The economy grew 9.6 percent in the third quarter, the to the lowest degree in a year, as the government curbed credit growth, clamped overmatch on property speculation and chased energy-efficiency and pollution targets. The NDRCs last fuel-price adjustment was in June, when the agency cut the represent of gasoline and diesel. The modest price hike is not a shock as China is keen to slow down the economy and improve energy efficiency through pursual rate hikes and incremental fuel price increases, Gordon Kwan, head of regional energy research at Mirae Asset Securities (HK) Ltd., said in e-mailed comments.

The government has made 12 adjustments since introducing a mechanism in December 2008 that allows the NDRC to revise prices when crude costs change much than 4 percent over 22 working days. Fuel prices were last raised by as much as 4.6 percent in April. China Petroleum & Chemical Corp., the domains biggest refiner known as Sinopec, fell 0.5 percent to weedy at 9.17 yuan in Shanghai trading. PetroChina Co. gained 1 percent to 11.56 yuan. The benchmark Shanghai Composite Index dropped 0.3 percent. Refining Profit Sinopec and PetroChina will benefit from the adjustment with crude in -New York climbing 13 percent since June 1, when the NDRC cut gasoline prices by 230 yuan a ton and the price of diesel by 220 yuan a ton. PetroChinas first-half refining margins fell from a year earlier, the... If you loss to get a full essay, order it on our website: Orderessay

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