In our recent Foolish oil outlook, we noted the detrimental impact that fuel subsidies are having on worldwide demand. Many countries have readjusted their rates to more closely reflect global prices. At first it looked like China would be a holdout, but even this prince of price-fixers is feeling the pressure.
China's announcement that it's immediately raising gasoline and diesel prices -- by 17% and 18%, respectively -- is a significant move, and the winners and losers are starkly clear.
The most obvious beneficiaries are the oil refiners, China Petroleum & Chemical
Another big beneficiary of today's fuel-price adjustment is Gushan Environmental Energy
Along with the diesel and gasoline increases, the Chinese government also decided to kick electricity rates up a notch as well. I think that's why you're seeing shares of utilities like Huaneng Power
The electricity price increase spares residential customers, not to mention agricultural players such as AgFeed Industries