The Chinese government has announced measures to limit the rise in domestic fuel prices as global oil costs surge ongoing tensions in the Middle East.
According to authorities, the move is aimed at cushioning the impact of rising crude oil prices on consumers and maintaining economic stability.
Global oil prices have climbed sharply due to the ongoing conflict involving the United States, Israel, and Iran, particularly around the Strait of Hormuz—a critical route that handles about 20 per cent of global oil and gas shipments.
In a statement released on Monday, China’s top economic planning body, the National Development and Reform Commission (NDRC), said temporary regulatory measures have been introduced to curb excessive increases in fuel prices.
The commission stated that maximum retail prices for gasoline and diesel would rise by 1,160 yuan ($168) and 1,115 yuan per metric tonne respectively, effective from midnight.
It noted that the increase is roughly half of what would have been implemented under the country’s usual pricing mechanism, which would have raised gasoline and diesel prices by 2,205 yuan and 2,120 yuan per metric tonne respectively.
The NDRC explained that the intervention is designed to ease the burden on consumers, support downstream industries, and ensure stable economic operations and public welfare.
China typically reviews and adjusts fuel prices in line with global crude oil trends. In its last adjustment in March, the commission raised gasoline and diesel prices by 695 yuan and 670 yuan per metric tonne respectively.
Margaret ABAH
