Analysts believe diesel oil prices, which have risen at wholesale and retail levels since the beginning of this month, are going up because of hoarding. Average prices are 5 per cent higher than the national fixed price of 2,240 yuan (about HK$2,083) per tonne. Diesel-oil prices rise every winter, but increases this year are worse than in earlier years. In 10 days, the price for No 10 diesel oil rose 10 per cent, the Economic Information Daily said. Many companies and people have begun to hoard because the government starts taxing diesel oil next year. Some also fear an oil shortage. The government also has a role. On November 11, Beijing Petroleum Group released a notice instructing all oil firms to take advantage of the situation and jack up prices 3 per cent. Increased demand from the construction industry and the government's anti-smuggling crackdown have also raised prices.
