The National Development and Reform Commission announced that it has raised the prices of automobile fuel and diesel by 300 yuan ($47.77) and 290 yuan ($46.18), Xinhua reported today. According to estimations, the retail per-liter prices of 90 octane fuel and zero octane diesel fuel will increase by 0.22 yuan ($0.035) and 0.25 yuan ($0.039), respectively. This decision marks the first time this year that fuel prices have been raised in China, and comes three months after the last pricing adjustment.

According to outlined standards, domestic fuel prices should be adjusted when the average pure oil price on the international market fluctuate over four percent over the course of 22 days. During the Chinese New Year holidays, the prices on the Brent Crude, Dubai Crude and Cinti markets fluctuated wildly, causing many in the country to speculate that the NDRC would soon readjust market prices. Analysts believe the NDRC deliberately held off announcing a price adjustment until the end of the New Year festivities in order to ensure that there would be no sudden disruptions in the domestic market. February is traditionally a heavy travel season in China due to the holiday, with many citizens taking advantage of toll fee exemptions on major roads to meet family and relatives.

While most analysts predict the price rise's influence on the consumer price index to be limited, they point out that more expensive fuel will raise shipping costs for other products. Major logistics enterprises are expected to see their transportation costs rise. SCI Analyst Chen Qing estimates that fuel costs for trucks transporting 50 tons of cargo 10,000 km a month will increase by around 930 yuan ($148.09). He also predicts operation costs for taxis to rise considerable as well.