China raised gasoline and diesel prices Thursday by about 10 percent to curb demand amid shortages that have caused long lines at filling stations and disrupted trucking in key export areas.
Oil companies have blamed the shortages, which began last week, on a lack of refining capacity. Government controls have forced refiners to pay the difference between soaring market prices for crude and lower retail prices at the pump. Some refiners responded by cutting output.
10 percent is not enough of an increase if China wants to keep the Yuan pegged to the dollar.