China sees gasoline prices rise higher than U.S.

Shanghai, October 10, 2008 -(Gasgoo.com) Following Beijing's recent rise in gasoline prices, China now claims a higher gasoline prices than the U.S., local Chinese media said today.

Crude oil prices fell to a new low for the year Thursday on the New York Mercantile Exchange, dropping to under $85 per barrel, U.S. news agency United Press International (UPI) reported.

At the pump, the national average price for a gallon of regular unleaded gasoline was $3.403 (equal to $0.898 per liter) Thursday, down from Wednesday's $3.447 a gallon.

"Gasoline prices could dip below $3 a gallon nationwide, if crude oil remains around $90 a barrel for a couple of months," said Howard Gruenspecht, the acting head of the U.S. Energy Information Administration, an arm of the Energy Department.

But on the other side of the Pacific, gasoline prices in Beijing went up by $29.18 per ton, over 2 percent, with the exact proportion of the increase depending on the fuel quality from October 7. Diesel pump prices rose $42.5 per ton, around 4 percent.

Price of 93# gasoline, which is widely used by Beijing citizens, soared to a record high of $0.934 per liter, up $0.025 from the previous level. Wholesale prices of gasoline and diesel were also raised. The price hike made Beijing's gasoline prices exceed US levels by $0.036 for the present.

The Beijing Municipal Commission of Development and Reform said in a notice that the price adjustment is to help cover the cost of providing the city with cleaner but more expensive Euro IV standard fuel.

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