China increases fuel price by 8% from Nov. 1, 2007

China raised gasoline and diesel prices by 8 percent Thursday amid fuel shortages that oil companies blame on a lack of refining capacity due to price controls.

The National Development and Reform Commission (NDRC), the country's top economic planner, announced Wednesday night that the prices of gasoline, diesel oil and aviation kerosene would be raised by 500 yuan ($68) per ton.

That translates into motorists paying 0.4 yuan or 0.46 yuan more per litre of gasoline or diesel.

The change was made to narrow the gap between soaring crude oil prices and state-set retail prices, the country's main planning agency, the National Development and Reform Commission, said in a statement.

"To ensure the supply of domestic oil products and the promotion of energy conservation, the state decided to properly increase the prices of oil products," the NDRC said. It said the price rise also would apply to aviation fuel.

Shortages of diesel and gasoline have led to rationing over the past week, causing long lines at filling stations and disrupting trucking in key export areas.

Some customers and Chinese media accused oil companies of creating phony shortages to force Beijing to raise prices.

On Wednesday, a man was killed in a fight after he tried to cut in line for gas in the central province of Henan, according to police.