China raises retail fuel prices

China will raise the retail prices of gasoline and diesel for the second time this year as international oil prices increase, the country’s top economic planner said Tuesday.

Both gasoline and diesel prices will rise by 50 yuan (7.3 U.S. dollars) per tonne from Wednesday, according to the National Development and Reform Commission (NDRC).

Oil prices on international markets have risen since the Organization of the Petroleum Exporting Countries (OPEC) delivered more than 90 percent of the output cuts they agreed last year. However, higher output in the United States and other oil producers will lead to oversupply in the short term, according to the NDRC price monitoring center.

International oil prices will continue to fluctuate between 50 and 60 U.S. dollars per barrel in the first quarter, the center predicted.

Under the current pricing mechanism, if international crude prices change by more than 50 yuan per tonne and remain at that level for 10 working days, the prices of refined oil products such as gasoline and diesel in China will be adjusted accordingly.