However, the move has raised questions over government attempts to curb inflation.

China, which subsidies the cost of fuel, increased the price of wholesale petrol and diesel by US$53 per tonne from February 20.

Further price rises may be needed if the cost of oil keeps rising on the international market, analysts said.

Instability in the Middle East has raised concerns about supply, and the price of oil has climbed to more than US$100 per barrel.

China's National Development & Reform Commission (NDRC) said that the price rise was needed to slow demand for oil and fuel in China.