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China petrol price rise fuels motorists' anger

SHANGHAI
Thu Jun 19, 2008 9:24pm EDT
A customer pays a petrol station attendant after filling his car's petrol tank before the midnight deadline for price rises in central Beijing June 19, 2008. China raised retail gasoline and diesel prices on Thursday by up to 18 percent, a move that threatens to stoke domestic angst over decade-high inflation less than two months before Beijing hosts Olympics games. REUTERS/David Gray

SHANGHAI (Reuters) - Chinese motorists, knowing the price of petrol was about to jump, queued for hours at a gas station only to be told they could not be served until the price rise took effect, prompting angry scenes on the forecourt.

China

Word spread fast by phone and SMS after news of the price rise leaked out. Soon motorists from around China's financial hub were heading to gas stations to fill their tanks.

Police were mobilized in Shanghai and government officials stood by at gas stations in Beijing, host of the Summer Olympics in just 49 days, to ward off any trouble from irate drivers.

At least one station told customers that it would shut for repairs until the price hike took effect at midnight, prompting an altercation between staff and angry motorists.

"You guys make a huge profit and get high prices. We consumers are pitiful," said a Shanghainese waiting to fill his Volkswagen Santana.

Prices for gasoline and diesel fuel rose unexpectedly by 1,000 yuan ($145.5) per tonne each effective from midnight on Thursday (1600 GMT). Beijing pledged subsidies to farmers and low-income families and taxi drivers to cushion the crunch.

"It's crazy," said another Shanghai man driving a Passat. "Inflation is becoming serious and harming my ordinary life -- I won't be able to stand it for long if prices continue to rise."

Most analysts had expected Beijing to hold out until after the Olympics in August as policymakers to avoid any hint of social unrest.

"I am wondering whether I need to forget my new car and take the subway to work as the cost of driving is too high," Zhu Hong, 28, who bought her car just two months ago, said.

The 16.7 percent increase in gasoline takes the pump rate to about 75 U.S. cents a liter, still a quarter cheaper than in the United States and about one-third what UK motorists pay. Prices have doubled since 2003, but crude has more than quadrupled.

"Whether you are willing to accept it or not, you have to accept it," Beijing taxi driver Fang Jinguan said. "The government is much stronger than its people."

(Additional reporting by Beijing newsroom and Alfred Cang; Writing by Nick Macfie; Editing by Lucy Hornby)



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