China puts limits on fuel price hikes

China has limited the amount by which the country’s fuel costs can rise, the government announces, as oil prices have surged due to the Middle East war.

China’s state planner, the National Development and Reform Commission (NDRC), said it hiked the maximum retail prices for gasoline and diesel by 1,160 yuan ($168) and 1,115 yuan per metric ton, respectively, starting from midnight.

The NDRC reviews retail gasoline and diesel prices every 10 ​working days and applies adjustments reflecting changes in international crude oil prices, while taking into account average processing costs, taxes, distribution expenses, ​and appropriate profit margins.

Under the current pricing mechanism, gasoline and diesel prices would have been set to rise by 2,205 yuan per metric ton, and 2,120 yuan per metric ton, respectively, according to NDRC.

If fully implemented, the latest adjustment would cost a ​private car owner about $6.5 more to fill a 50-litre tank of 92-octane gasoline.

The adjustments brought on by rising oil prices linked to the U.S.-Israeli war on Iran were still the largest on record, however, lifting ​price limits close to levels seen in 2022.