China Raises Rail Cargo Prices

04.07.2008 (12:10)

China has increased charges on cargo train transport to cope with rising fuel prices, the National Development and Reform Commission said on Wednesday according to Reuters.

The price hike, effective on 1 July, came two weeks after China raised fuel prices by up to 18% as part of its effort to narrow the price gap between home and abroad.

The top economic planner, in a joint statement with the Ministry of Railways, said the higher charges were made to "ease the impact of fuel price adjustment on railway transport costs".

It also urged local price departments to strictly control any chain reaction afterwards and step up a crackdown on illegal price hikes.

China last raised the charges in April 2006.