The government raised the benchmark retail prices of gasoline by 290 yuan ($42.46) per ton, or 5 percent, and diesel by 180 yuan per ton, or 3.7 percent, as of midnight yesterday.

But the National Development and Reform Commission (NDRC), the top economic planner, did not say whether the cuts were for the factory gate price or the retail market. Nor did it specify how the cuts would affect the range of prices for various grades of fuel or in different parts of the country.

Top quality gasoline in Beijing cost 5.70 yuan a liter yesterday; and the revised price is expected to be around 6 yuan.