The National Development and Reform Commission, or NDRC, said Tuesday that gasoline prices will rise by $47 to $1,160 per ton, translating to a hike of about 3.4 cents more per liter, or 13.6 cents per gallon.
Diesel will jump by $45 to $1,047 per ton — a rise of about 3.9 cents per liter, or 15.6 cents per gallon.
"Since the start of December, international oil prices have risen sharply higher from the recovery of major economies, and cold weather driving demand for heating oil and other factors," the top economic planning body said in a statement on its website.
This is the third time China has raised gasoline and diesel prices this year after earlier hikes in April and October.
Oil prices on the international market were trading in the range of $70 a barrel for most of this year but jumped to a two-year high above $90 earlier this month as Federal Reserve measures to keep lending rates low fueled optimism U.S. economic growth will accelerate next year.
The NDRC said the hike was delayed because of concerns about rising consumer prices. China has been fighting to rein in inflation, which rose to a 28-month high in November.
It said the government would ensure that key industries such as farming, forestry, fisheries as well as public services like transportation would continue to receive state subsidies that would help mitigate the impact of the fuel price hikes on consumers.
The move comes as demand for diesel has skyrocketed amid already strong fuel demand, after thousands of factories bought diesel generators to cope with power cuts imposed by authorities to meet energy-saving goals.
Major oil refiners were holding back supplies in anticipation of a rise in the retail price, which will help refiners pass on high crude costs to consumers.
