China moderates planned increase in wholesale gasoline and diesel prices
Rising global energy prices present governments with the challenge of balancing stable supplies with fuel affordability for consumers. China has introduced measures to soften the impact of higher crude oil prices on its domestic market.
The National Development and Reform Commission (NDRC) announced on Thursday that wholesale prices for gasoline and standard diesel would rise by 345 yuan and 335 yuan per tonne, respectively, effective October 30. The increases are equivalent to approximately 51.8 U.S. dollars and 50 dollars.
The original plan called for increases of 440 yuan per tonne for gasoline and 420 yuan for diesel. The latest adjustment reduced the increases by 95 yuan and 85 yuan per tonne, respectively.
According to the commission, escalating tensions in the Middle East following the previous price adjustment on October 15 triggered a rapid rise in international crude oil prices. The latest measures are intended to limit the impact of this surge on the domestic market.
Bian Zheng, director of the fossil energy price and cost division at the NDRC’s Price Cost and Certification Center, said average international crude oil prices had risen sharply over the previous ten working days. He explained that the adjustment aims to ease the burden on consumers while ensuring the safe and stable supply of refined oil products.
Under China’s refined oil pricing mechanism, maximum retail prices for gasoline and diesel are reviewed every ten working days according to changes in the average price of a basket of international crude oil products. Since the October 15 adjustment, Brent crude oil futures have approached their highest level of the year.
Chen Shouhai, director of the Research Center for Oil and Gas Policy and Law at China University of Petroleum, said authorities must consider both consumers’ ability to pay and the need to maintain stable market supplies when adjusting fuel prices. He noted that price increases should be limited as much as possible to reduce the burden on consumers, while allowing oil refiners to pass on a moderate share of higher import costs to avoid disruptions to production.
According to CCTV+, China’s latest fuel price adjustment is intended to cushion the effects of rising global oil prices while balancing consumer interests with the need to maintain stability in the domestic refined oil market.
