China caps fuel price hikes as global crude rises
Beijing limits gasoline and diesel increases to cushion the impact of higher oil prices.
China has once again moved to soften the impact of rising global oil prices by limiting domestic gasoline and diesel price increases, as geopolitical tensions push international crude markets higher.
The National Development and Reform Commission (NDRC) said retail price ceilings for gasoline and diesel will rise by 420 yuan ($61.18) and 400 yuan ($58.25) per metric ton, respectively, effective from midnight Tuesday. Under the country’s pricing mechanism, the increases would typically have reached about 800 yuan ($116.49) for gasoline and 770 yuan ($112.14) for diesel.
The adjusted pricing will mean an additional cost of roughly $2.40 for a private vehicle owner filling a 50‑litre tank of 92‑octane gasoline.
China’s move comes amid renewed volatility in oil markets following heightened tensions involving Iran and disruptions affecting the Strait of Hormuz. Oil prices extended gains after Iran rejected a U.S. ceasefire proposal and ahead of a deadline set by U.S. President Donald Trump for Tehran to reach an agreement.
The NDRC said the government is continuing to implement measures aimed at stabilizing refined oil prices and shielding the domestic market from sharp swings in international crude prices. Retail fuel prices in China are reviewed and adjusted nationwide every 10 working days, based on changes in global oil prices as well as processing costs, taxes, distribution expenses and profit margins.
China last adjusted fuel prices on March 23, when gasoline and diesel prices were increased by 1,160 yuan ($168.89) and 1,115 yuan ($162.43) per ton, respectively, also at roughly half the level dictated by the pricing formula.
