China’s National Development and Reform Commission (NDRC) has announced the implementation of temporary control measures regarding the retail prices of diesel and gasoline, effective as of last Monday. This decision was made in response to significant increases in international oil prices.
Xinhua News Agency referenced a NDRC statement indicating that these measures were adopted to mitigate the impact of abnormal price surges, reduce the financial burden on downstream users, and ensure a stable social livelihood and economic operation.
Read more: China’s trade surplus surpasses $1 trillion on strong exports despite U.S. decline
Under the existing pricing mechanism, gasoline and diesel prices were projected to rise by 2,205 yuan (approximately $319.4) and 2,120 yuan per tonne, respectively. However, due to these new controls, the actual price increases will be limited to 1,160 yuan and 1,115 yuan per tonne. These actions mark the first instance of such price controls being utilized since the current oil pricing mechanism of China was introduced in 2013. Analysts have noted that these controls represent a timely and effective response to global market volatility, helping to support the steady operation of the domestic economy.
For more news on energy, click here.
