Gasoline, diesel prices go up in China

BEIJING, June 30 (UPI) -- China's state-set domestic gasoline prices went up 8.6 percent for a liter of gasoline and 9.6 percent for a liter of diesel effective Tuesday.

The increase would mean an additional 0.45 yuan, or about 6.75 U.S. cents, for a liter of gasoline and 0.51 yuan, or 7.5 U.S. cents, for a liter of diesel, the National Development and Reform Commission said on its Web site.

One U.S. gallon equals about 3.8 liters.

The commission said it was the third such price adjustment this year in response to "recent international oil price fluctuation," the state-run Xinhua news agency reported.

China is following a new fuel pricing mechanism under which domestic prices are linked to global crude prices, the report said. Under the pricing mechanism, benchmark retail prices can be changed when international crude prices rise or fall by a daily average of 4 percent for 22 straight working days.