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China underlines stable market prices following oil price hikes
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China's top economic planning body urged local governments on Saturday to keep stable market prices after it raised refined oil prices.

To balance higher costs caused by increased oil prices, the central government has already appropriated subsidies for public transportation and passenger transportation in rural areas, said the National Development and Reform Commission (NDRC) in a circular.

Local governments should take effective measures to minimize impacts on residents, such as extending temporary subsidies or raising minimum subsistence money to urban poors, the circular said.

Those who jack up prices or make up and spread rumors of price hiking will be severely punished to keep a stable market of refined oil, natural gas and liquified gas, said the circular.

In addition, the central government has dispatched inspection teams to provinces and municipalities to ensure all the measures are put in place.

The NDRC raised the prices of gasoline, diesel oil and aviation kerosene by 500 yuan per ton on Thursday, almost a 10 percent rise.

The average retail price of gasoline now stands at 5,980 yuan per ton, that of diesel 5,520 yuan per ton.

(Xinhua News Agency November 4, 2007)

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