According to the Ministry of Finance on Friday, China had allocated 19.8 billion yuan in subsidies to sectors that could be affected by fuel price hikes.

Among the subsidies, 12 billion yuan will be set aside for taxis, urban and rural buses, the fishery, and forestry sectors, while 7.8 billion yuan will go to grain producers, the ministry said.

Analysts said the move was part of the government's efforts to blunter the impact of a surprise increase of fuel prices, as inflationary pressure is already high.

China's benchmark gasoline and diesel oil retail prices were raised by 1,000 yuan per ton and aviation kerosene went up by 1,500 yuan per ton, effective on Friday, according to the National Development and Reform Commission (NDRC).

However, fares for passenger rail services, urban and rural public transport and taxis would be unchanged, said the NDRC.