China on Monday increased domestic gasoline prices by 120 yuan ($16.90) a ton and domestic diesel prices by 110 yuan a ton, according to an announcement by the country’s top economic planner.
It was the first time China has raised the price of refined oil products this year after lowering gasoline and diesel prices three times to keep them in line with slumping international crude prices. Benchmark Brent crude oil future prices have bounded back to about $40 a barrel this month after briefly falling below $20 a barrel in April.
The increase pushed the price of gasoline above 7,000 yuan per ton in some regions, while the price of diesel was around 6,000 yuan a ton.
In China, crude oil prices fluctuate with the international market, but the prices of fuel and other oil products are guided or set by the central government and adjusted every 10 business days. Under this system, the National Development and Reform Commission adjusts domestic fuel prices when international crude oil prices are between $40 and $130 a barrel, but will cease the adjustments once the price of crude falls below $40 a barrel or rises above $130 a barrel.
Before Monday’s price hike, the central government had cut gasoline prices by 1,730 yuan a ton and diesel prices by 1,670 yuan a ton this year.
Contact reporter Lu Yutong (email@example.com) and editor Michael Bellart (michaelbellart@caixin)
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