China Seen Raising Fuel Prices Soon

China is expected to raise prices for refined oil products in the next few days following a steep rise in crude oil prices in recent weeks, local media reported on Thursday, citing people with industry knowledge.

The National Development & Reform Commission could raise the prices for refined products by 400 to 500 yuan ($63-79) per tonne in mid-March, since the 22-day moving average of international crude oil prices has already risen by about 10 percent, the official Shanghai Securities News reported.

The NDRC normally considers adjusting fuel prices if the 22-day moving average of international crude oil prices rises or falls more than 4 percent, while also considering other factors such as inflation, fuel supply and demand.

Sources said China's top two oil companies, PetroChina and China Petroleum & Chemical Corp have already submitted recommendations of price rises to NDRC.

The NDRC sets fuel prices using a formula based on three different international crude oil prices: Brent, Dubai and Cinta.

China previously raised the ceiling for retail prices of gasoline and diesel by 3 to 4 percent in early February. ($1 = 6.3323 Chinese yuan).