China cuts retail fuel prices
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China will cut the retail prices of both gasoline and diesel for the fifth time this year from Friday following a drop in global oil prices, the country’s top economic planner said Friday.
Gas prices will decrease by 180 yuan ($26) per ton, while the diesel price will be lowered by 175 yuan per ton, according to the National Development and Reform Commission (NDRC).
China adjusts domestic retail oil prices when international crude prices change by more than 50 yuan per ton within a 10 working-day period.
Global crude prices have fallen in recent weeks following expansion of U.S. crude oil output and inventories. The NDRC expected global crude prices to continue to fluctuate, tempered by the effects of falling OPEC output and rising U.S. production.
The NDRC said it is closely monitoring the current pricing mechanism and will continue improvements based on market changes.
Questions & Answers
Q.What is the specific price reduction for gasoline and diesel?
What is the specific price reduction for gasoline and diesel?
Gasoline prices will decrease by 180 yuan per ton, while diesel prices will be lowered by 175 yuan per ton. These changes are effective from Friday, as announced by the NDRC.
Q.What is the mechanism by which China adjusts its domestic fuel prices?
What is the mechanism by which China adjusts its domestic fuel prices?
China adjusts domestic retail oil prices when international crude prices change by more than 50 yuan per ton within a 10 working-day period. This ensures prices reflect global market shifts.
Q.What factors are influencing the global crude oil prices at the moment?
What factors are influencing the global crude oil prices at the moment?
Global crude prices have recently fallen due to increased U.S. Crude oil output and inventories. However, the NDRC expects future fluctuations, balanced by falling OPEC output and continued U.S. Production.
Q.How many times have fuel prices been cut in China this year?
How many times have fuel prices been cut in China this year?
This will be the fifth time China has cut the retail prices of both gasoline and diesel this year. The adjustments follow recent drops in global oil prices.
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