Chinese oil firms have resorted to supply cuts as they face mounting losses in the local market, where they sell petrol and diesel at 20% and 40% below their international prices, respectively, according to the news source. The Chinese government has the final say in fixing the price of fuels.
Energy sector analysts are of the opinion that China will not raise petrol prices as it is focused on reducing inflation, which was at 8.5% in April 2008. The Chinese government has last increased prices in November 2007, when it increased the price of petrol and diesel by 10%, according to PetrolWorld.
