China gas prices jump. Taxi fares next?

Effective today, China will raise gasoline and diesel fuel prices 16 percent and 18 percent, respectively, news that sent global oil prices down nearly US$5 a barrel. Electricity prices are also expected to rise sharply. Reuters offers a poorly displayed chart that shows China's domestic gasoline prices, fixed since November 1, have climbed 95 percent and diesel prices have more than doubled since 2003. Retail fuel prices in China are expected to increase to $3.05 per gallon for gas and $3.31 for diesel. Says the New York Times, "Costlier fuel and electricity could prompt businesses and individuals across China to use less of it, slowing somewhat China’s voracious increase in oil consumption in recent years as well as its steep rise in emissions of global warming gases." [Sources: AP, Reuters, LAT, NYT, CNN]