January 10, 2008--The Chinese government will take more measures to stabilize prices and punish hoarding and speculation of basic commodities, the China Daily reported. At a meeting of the State Council executive led by Premier Wen Jiabao, it was decided that "prices of gasoline, natural gas and electricity shall not be adjusted in the near future, and charges for gas, water, heating and public transport in cities shall not be raised," a statement said. "Fees for medical treatment shall be stabilized. Prices of major fertilizers, such as carbamide and phosphate fertilizer, shall be kept steady too and can only be raised really because of cost increase and after being approved by the regulator."

On a temporary basis, the government will intervene in setting prices of daily necessities, in line with the Price Law.

All large-scale producers of key consumer products must get government approval before imposing any price increases, as will large-scale wholesalers and retailers that want to raise prices. The Price Law allows the State Council to temporarily freeze prices or centralize the price-setting power on part of or the whole market if the prices undergo strong fluctuations.

Cheng Guoqiang, deputy director of the Market Economy Institute with the Development and Research Center of the State Council said that the measures have been taken after key government meetings held last year set the tone of "preventing economic growth from evolving from rapid to overheating and preventing price hike shifts from going from structural to inflationary."