China raised energy prices across the board on Thursday in a big policy shift that risks stoking the country’s already high inflation.

International oil prices fell immediately as Beijing said that petrol and diesel would go up by to 18 per cent and electricity tariffs rose by just less than 5 per cent. Oil prices – already under pressure as Saudi Arabia is expected to announce on Sunday an increase in oil production – fell more than $4 a barrel to $132.32.