China cuts retail oil prices
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The prices of gasoline and diesel in China will respectively be cut by 110 yuan and 105 yuan (18 U.S. dollars) per tonne, the National Development and Reform Commission (NDRC), China’s top economic planner, said in a statement Monday.
The adjustment will come into effect Tuesday. The benchmark retail price of gasoline will drop by 0.08 yuan per liter and that of diesel by 0.09 yuan.
Prices of refined oil products in China are adjusted when international crude prices translate into a change of more than 50 yuan per tonne for 10 working days.
Crude prices fell last week, weighed on concerns of oversupply after the Organization of the Petroleum Exporting Countries (OPEC) decided to keep its daily output at 30 million barrels for the next six months.
The NDRC has reduced oil prices for four times and raised them five times this year, tracking changes in international crude oil prices.
Questions & Answers
Q.Which body is responsible for making these price adjustments?
Which body is responsible for making these price adjustments?
The National Development and Reform Commission (NDRC), China’s top economic planner, is responsible for adjusting the prices of refined oil products. They track changes in international crude oil prices to make these decisions.
Q.What is the trigger for China to adjust its retail oil prices?
What is the trigger for China to adjust its retail oil prices?
Retail oil prices in China are adjusted when international crude prices result in a change of over 50 yuan per tonne, sustained for a period of 10 working days. This mechanism ensures prices reflect market shifts.
Q.Why did international crude prices fall last week?
Why did international crude prices fall last week?
International crude prices fell last week due to concerns about oversupply. This followed the Organization of the Petroleum Exporting Countries (OPEC) decision to maintain its daily output at 30 million barrels for the next six months.
Q.How will the retail price of gasoline and diesel change per litre?
How will the retail price of gasoline and diesel change per litre?
The benchmark retail price of gasoline will drop by 0.08 yuan per litre. For diesel, the retail price will decrease by 0.09 yuan per litre following this adjustment.
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