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China Raises Jet Fuel Price by 5 Percent
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Chinese airlines, plagued by sky-high fuel prices, were hit again with a price increase as jet fuel rose another 5 percent, the Xinhua-run Shanghai Securities News reported Thursday.

The newspaper quoted sources with the China Aviation Oil Holding Company (CAOHC) as saying that since July 21, the domestic retail price of jet fuel was raised by 290 yuan to 5,800 yuan (US$725) per ton.

The National Development and Reform Commission (NDRC), however, said the government has not yet raised prices paid by CAOHC to China's jet fuel refineries.

This means that the CAOHC, which has a monopoly on domestic jet fuel sales, can offset the higher price it pays on the international market against the price it pays to domestic refineries to keep fuel costs a little lower, the newspaper said.

China imported 2.47 million tons of jet kerosene in the first half of the year, a dramatic increase of 95 percent year on year. Imported jet oil makes up about 40 percent of China's supply of jet oil.

China's aviation sector lost 2.57 billion yuan in the first half of the year an increase of 1.99 billion yuan year on year.

(Xinhua News Agency August 5, 2006)

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