Beijing  - China on Friday announced rises in petrol and diesel prices of 16 per cent and 18 per cent, respectively.

Petrol will now cost 6,980 yuan (1,015 dollars) per ton and diesel will be 6,520 yuan (949 dollars), both up by 1,000 yuan (145 dollars) per ton.

The price of aviation kerosene will be raised by 1,500 yuan (218 dollars) per ton to 7,450 yuan (1,084 dollars), the government said.

The official China Daily newspaper said the government was forced to raise its subsidized oil prices for the first time in eight months "because of the soaring price of crude in the international market."

The National Development and Reform Commission said the rise was expected to help alleviate losses suffered by Chinese oil refineries and ensure stable supplies.

"The increase in the prices will benefit domestic oil companies," the commission said in a statement.

The government will also raise electricity prices for most businesses by 0.025 yuan (0.0036 cents) per kilowatt from July 1, it said.

The newspaper said earthquake-devastated areas of Sichuan province would be exempt from the rises in fuel prices. (dpa)