Beijing: China will reduce retail prices of gasoline and diesel starting on Saturday to reflect changes in international oil prices, the country's top economic planner said on Friday.
Gasoline prices will be cut by 230 yuan (about $34) per ton, and diesel prices will drop by 220 yuan per ton, according to the National Development and Reform Commission (NDRC).
Under China's current pricing mechanism, domestic gasoline and diesel prices are adjusted every 10 working days in line with changes in international crude oil prices.
Since the previous domestic pricing adjustment on July 31, tensions among the United States, Israel and Iran have eased, boosting market expectations for the full reopening of the Strait of Hormuz and triggering a sharp drop in international crude oil prices.
However, crude prices bounced back and fluctuated upward later amid deadlocked US-Iran negotiations.
Even so, the average international oil price during the 10 working days considered for this round of adjustment was lower than that recorded in the previous pricing cycle, leading to the domestic price cuts.
But, Meng Peng, a senior analyst with Sublime China Information Co., Ltd., warned that multiple risks continue to unsettle the global oil market and may drive up future prices.
"Crude oil prices still fluctuate at relatively high levels now, while geopolitical situation is very uncertain. Additionally, the continued decline in the US strategic oil reserves and upward revisions to oil price forecasts by agencies like the US Energy Information Administration are also disturbing international oil market trends," he said.
