China will raise the producer price of diesel oil by 150 yuan (about US$18) per ton from Tuesday, according to sources with a state authoritative institution of China.

China raised the producer price of gasoline by 300 yuan (about US$35) per ton on March 23 due to soaring international crude oil prices.

To guarantee the demand for diesel oil used in agricultural production, however, China resisted raising diesel oil prices.

As a result, the country has seen a tension between the supply and demand of diesel oil in the past month.

(Xinhua News Agency May 10, 2005)