China hikes diesel oil prices by 18 dollars a ton

BEIJING, Tuesday (AFP) - China Tuesday raised the producer price of diesel oil by 150 yuan (18 dollars) per ton to prevent shortfalls from spreading, state media reported.

China hiked the producer price of gasoline by 300 yuan (35 US dollars) per ton on March 23 due to soaring international crude oil prices.

But to guarantee the demand for diesel oil used in agricultural production, it resisted raising diesel oil prices, the official Xinhua news agency said.

Industry sources said last month that the government would raise prices when the spring ploughing season draws to an end in May, to prevent diesel shortfalls from spreading beyond heavily affected areas such as Beijing.

They said the timing of the anticipated hike was meant to prevent China's hundreds of millions of subsistence farmers from bearing the brunt of increased fuel costs.

China is now the world's second largest oil consumer after the United States. World oil prices have nearly trebled from about 20 dollars a barrel in New York at the start of 2002.

New York's main contract, light sweet crude for delivery in June, added 1.07 dollars to end at 52.03 dollars a barrel Monday.