The National Development and Reform Commission, country's top economic planner, has sought to encourage producers to cut production costs, instead of increasing the prices and told the local governments to reduce administrative fees paid by producers, state media reported.
The commission said all concerned departments should firmly stick to the price adjustment policies and warned that those who illegally increased the prices would be punished.
Many economists have expressed concern that the latest increase in the prices of gasoline and diesel and electricity might stoke the inflation which showed signs of easing in May.
China, the world's second biggest oil consumer, on Friday increased gasoline and diesel prices to tame the voracious domestic demand and bring some relief to its refineries reeling under losses.
The retail prices of gasoline were increased by 16 per cent, while diesel prices went up by 18 per cent. The increase in the prices was made for the first in the last eight months.
The hikes in energy prices would have a limited impact in stoking the inflation rate, as prices related to people's livelihood remain unchanged, Xu Kunlin, deputy head of NDRC said earlier.
More From This Section
The Consumer Price Index, barometer of inflation, slipped to 7.7 per cent in May from 8.5 per cent reported a month earlier which was near to 8.7 per cent, 12-year monthly high registered in February this year.