Beijing raises gasoline price to fund cleaner fuel

Shanghai, October 7 (Gasgoo.com) Beijing city raised retail gasoline and diesel prices overnight by 2-4 percent effective from zero hour today, reported Reuters citing an announcement of the Beijing Municipal government this morning.

From October 7, gasoline prices in Beijing went up by 200 yuan ($29.18) per ton, over 2 percent, with the exact proportion of the increase depending on the fuel quality. Diesel pump prices rose 290 yuan per ton, around 4 percent.

Price of 93# gasoline, which is widely used by citizens, soared to a record high of 6.37 yuan per liter, up 0.17 yuan from the previous level. Wholesale prices of gasoline and diesel were also raised.

The move is to help cover the cost of providing the city with cleaner but more expensive Euro IV standard fuel, the Beijing Municipal Commission of Development and Reform said in a notice posted on its website.

The Beijing increase comes on top of a nationwide fuel price hike in June of 18 percent. Prices for gasoline and diesel prices rose by 1,000 yuan per tonne effective since June 20.

Beijing began to ban the sales of cars that fail to meet Euro IV emission standards from March 2008, and the air quality has since been much improved, the commission said.