China raises fuel price caps after surge in global oil markets
Retail gasoline and diesel ceilings will climb nationwide following sharp increases in international crude prices.
China will raise its regulated retail fuel price caps on Tuesday, marking the largest single adjustment since 2022. The decision follows a rapid rise in international crude prices linked to the ongoing U.S.-Israeli conflict with Iran, which has disrupted global supply and pushed benchmark prices higher.
According to a notice from the National Development and Reform Commission (NDRC), gasoline price ceilings will increase by 695 yuan ($100) per metric ton, while diesel ceilings will rise by 670 yuan ($97) per metric ton. The previous price adjustment occurred on February 24.
The price adjustment comes amid reports that Chinese refiners were asked to suspend fuel exports and cancel scheduled shipments due to reduced refinery output. The move was aimed at securing domestic supply as disruptions related to the Iran conflict continued.
China reviews retail fuel prices every ten working days and applies uniform national adjustments, although regional benchmark prices may vary. The pricing mechanism takes into account international crude trends, processing costs, taxes, distribution expenses and reasonable profit margins.
Under China’s fuel pricing rules, retail gasoline and diesel prices are allowed to fluctuate within defined floors and ceilings. When global crude exceeds $130 per barrel, price increases at the pump are typically limited. Conversely, if crude falls to $40 or below, retail prices are calculated as if crude were priced at $40 to maintain stable margins for refiners.
The latest increase reflects both the rapid shift in global market conditions and China’s efforts to stabilize domestic fuel availability.
