China raised its domestic gasoline and diesel prices onnJune 20. Petrol and diesel prices went up 17% by Yuann1,000 ($145)/mt, while aviation kerosene increased bynYuan 1,500/mt. China has been reluctant to raise itsnregulated prices for refined oil products owing to fearsnthat any price rise would stoke already high inflation.nHowever, the government has been also been payingnhuge subsidies to oil refiners, which have been making anloss on every barrel of imported crude oil, owing to thendisparity between international and domestic crude oilnprices. Moreover, by keeping domestic prices down,ndemand has continued to grow.
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