China, the world's second-biggest energy user after the U.S., is experiencing ``strong pressure'' to increase domestic fuel prices, the finance and economic committee of the nation's legislature said.

Last month's gasoline and diesel price increases will add 0.5 percentage point to annual consumer inflation, the Financial and Economic Affairs Committee of the National People's Congress said in a report published on the Web site of the official Xinhua News Agency.

Chinese fuel prices remain lower than the global market, a situation that sustains high domestic demand and adds to pressure on global crude oil prices, the committee said in its report, posted today.

The latest electricity price increase is also ``far from'' sufficient to end losses at power producers, it said.

China raised gasoline and diesel retail prices by as much as 18 percent last month. Electricity prices were increased by 4.7 percent effective July 1.