The End of Cheap Fuel?

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ON June 19, the Na-tional Development and Reform Com-mission (NDRC) an-nounced that prices for petrol and diesel would rise by RMB 1,000 per ton the following day. Liu Su was driving to his suburban home when he heard the news on the radio. He immediately headed for the nearest gas station, but a long line of cars had already formed when he arrived.The increase saw prices at pet-rol pumps go up by more than half a yuan per liter for all grades of fuel. Liu Su drives a Bora Volk-swagen with a 1.6-liter engine. The car consumes around 10 liters for every 100 kilometers traveled, amounting to an extra RMB 2,000 annually that Liu needs to now spend on petrol. “Petroleum ex-penses already account for about 12 percent of my annual spend-ing,” he sighs. “Not to mention maintenance fees and f ines for oc-casional traffi c violations.” ON June 19, the Na-tional Development and Reform Com-mission (NDRC) an-nounced that prices for petrol and diesel would rise by RMB 1,000 per ton the following day. Liu Su was driving to his suburban home when he heard the news on the radio. He immediately headed for the nearest gas station, but a long line of cars had already formed when he arrived. The increase saw prices at pet-rol pumps go up by more than half a yuan per liter for all grades of fuel The car consumes around 10 liters for every 100 kilometers traveled, amounting to an extra RMB 2,000 annually that Liu needs to now spend on petrol. “Petroleum ex-penses already account for about 12 percent of my annual spend-ing, ”he sighs. “ Not to mention maintenance fees and fines for oc-casional traffi c violations. ”
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