The Los Angeles Times is reporting that China will be increasing retail gas prices on Friday by 16%. The last time China had increased retail fuel prices was in November. A one day 16% price hike sounds steep; however, consider that prices have been stable for the prior seven months. I last saw $3.99 gas just before the Memorial Day weekend. A month later, we’re around $4.60, or a 15% increase. I would like to take my 15% retroactive to last November as well, please.
I have no idea whether these increases in gas prices are caused by financial speculators, rising global demand or constrained gasoline supplies. Regardless, these price shocks do alter the calculation for determining the break-even point for investing in solar energy and other green technologies.