China, the world's second-biggest oil-consuming nation, unexpectedly raised gasoline and diesel prices by at least 17 percent and increased power tariffs to rein in energy use, potentially driving up inflation.

The record price increase, the first since November, may ease refining losses at China Petroleum & Chemical Corp. and PetroChina Co., who have been forced to sell fuels below cost. The companies' shares rose in Hong Kong trading.

Crude oil futures fell the most in 11 weeks in New York yesterday on speculation the increase, earlier and larger than analysts had forecast, will cut demand. China will pay 19.8 billion yuan ($2. ... Read full article