The country's top economic planner, the National Development and Reform Commission, has announced an unprecedented rise in energy prices. Prices of gasoline, diesel, jet fuel and electricity are included in the hike.
Beginning Friday, the benchmark gasoline and diesel retail prices were marked up by 1,000 yuan per ton, with the price of jet fuel up by 1,500 yuan per ton.
This is one of the sharpest price rises for years, taking the benchmark retail prices of both gasoline and diesel to nearly 7 thousand yuan per ton.
The economic planner says the oil price hike was made to ensure supplies in the country by reducing the gap between rising international crude prices and those in domestic markets.
More subsidies will be offered to farmers, public transport and low-income families to ease the pain of the hike.
The average electricity tariff will also go up by 2.5 cents per kilo-watt-hour starting from July 1.
Most of power suppliers suffered losses in the first half of this year because of the higher cost of coal.
The national economic planner said that quake-hit provinces will be exempt from the price rise.
The prices of natural gas and liquefied petroleum gas remains unchanged.
