(Photo : China Raises Retail Fuel Prices)

The National Development and Reform Commission (NDRC), China's top economic planner, said retail prices of gasoline and diesel in the country have been raised starting Saturday, the fifth increase so far for this year.

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Retail price of gasoline was increased by CNY0.17, or $0.03, per liter while diesel price went up CNY0.19 per liter, according to the NDRC statement posted on its website.

According to the NDRC statement, the retail fuel price implemented Saturday is the fifth price hike this year. Fuel prices in China are adjusted when global crude prices increase by more than CNY50, or $8.1, per ton over a period of 10 working days.

Not the Biggest Increase

The latest round of retail fuel price increase, however, was not the biggest. The biggest increase was recorded in July 20, when the NDRC raised the benchmark retail prices of gasoline by CNY0.24 and diesel by CNY0.26.

The per liter fuel price increase was based on the CNY235 ($38.41) per ton increase for gasoline and CNY225 (36.78) per ton increase for diesel that the NDRC implemented starting Saturday. The new retail fuel prices are the national rate as Chinese provinces could have slight varying ceiling prices.

China Gas Inks $167-Million Deal with Clean Energy

Meanwhile, China Gas Holdings Ltd has signed a $167 million deal with Clean Energy Fuels Corp, a provider of natural gas for transportation in North America.

The contract stated that IMW Industries, a fully-owned affiliate of Clean Energy Fuels will supply China Gas with 416 CleanCNG Compressors, 186 dryers, 527 dispensers, and 387,500 liters of buffer storage.

China Gas said it will use the products of IMW Industries to produce around 130 compressed natural gas (CNG) stations for the Chinese consumers. It also announced that it get funding from Export Development Canada for the $167 million deal.

In a statement, Clean Energy said China is now on its way to use natural gas, instead of gasoline and diesel fuel, as alternative fuel. It said the deal with China Gas is very timely as it will pave the way for more CNG stations that will be made available for Chinese motorists.