Fuel price hike brings down automaker shares

Shanghai, June 30 (Gasgoo.com) China's biggest carmaker SAIC Motor Corp. led declines by automakers in the trading of Shanghai and Shenzhen stock markets after the government raised the gasoline price from today, Bloomberg reported.

The Shanghai-based carmaker fell 4.2% on the city's stock exchange to 14.94 yuan as of 1:55 p.m. local time, headed for the biggest one-day decline in two months. Beiqi Foton Motor Co. fell 3.7% in Shanghai to 13.28 yuan while FAW Car Co. fell 2.1 % to 15.30 yuan in Shenzhen. China's benchmark Shanghai Composite Index fell 0.1%.

Starting today, the Chinese government raised fuel prices for the third time this year to help state-owned refiners such as China Petroleum & Chemical Corp. avoid losses amid higher crude oil cost.

Retail prices for gasoline and diesel were increased by 600 yuan ($87.8), or about 10%, a ton, according to the National Development and Reform Commission, China's top economic planner.

"Higher fuel prices increase the cost of running cars, so that may cause people to postpone their purchases," said Chen Liang, an auto industry analyst at Huatai Securities Co.