China Raises Gas Prices

The Chinese government has increased its prices for gasoline and diesel fuel by as much as 18 percent -- the country's highest one-time rise ever -- according to Reuters today.  The report made note that this comes less than two months before the country hosts the 2008 Summer Olympics in Beijing.  Inflation concerns may fuel some unrest among motorists in the country, as well.

Also mentioned was that shares of top Chinese oil refiner Sinopec (SHI - Analyst Report) rose 8 percent on the news.  Rival PetroChina (PTR - Analyst Report) shares are up 4-and-a-quarter percent as of mid-day trading.  Currently, Sinopec's fiscal year estimate according to the Zacks consensus is $4.31 per share.  For PetroChina, that number is $11.60 per share, though two analysts have revised estimates lower for PTR within the last month.

While Chinese oil refiners look to benefit, it is unclear at this point how much of an impact this rise in fuel prices will have on other aspects of the Chinese economy.  The country has had the fastest growing economy in the world for the past few years.