Gasoline prices rise sharply at the pump! Cheers then!

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Gasoline prices raised sharply at the pump overnight for Chinese drivers, with pricing set by the central government it does come as a shock when prices rise suddenly across the country which make it impossible to dash across town to the find the dealer with the best forecourt prices.

The latest round of rises is the largest this year and is not likely to be the first. Gasoline prices usually rise or fall in line with global prices rather than be subsided by the government, if global oil prices rise and the rise stays for more than two weeks then Chinese drivers will see a fall at the pump, if the price falls then it is likely that prices will fall accordingly.

The current rise in gasoline prices with it rising by 320rmb per metric ton of oil, the rise in oil is unlikely to curtail the massive growth in car sales that is expected to happen this year.

The price rise will now see gas prices as follows:

• 90# is now 6.48rmb per litre (unchanged)
• 93# is now 6.92 per litre (up 0.26rmb)
• 97# is now 7.37rmb per litre (up 0.28rmb)
• 98# is now 7.92rmb per litre (up 0.28rmb)

The prices rises are higher than they were in summer 2009 when oil was at a peak of $147USD, however oil is now at at $84USD after a five day slide. China’s on going price rises threaten to derail the overheating Chinese car industry which is heading to hit 15 million vehicles later this year after strong March auto sales were total sales hit 1.4 million vehicles.