China has once again limited its price increases for petrol and diesel to around half the typical increase under its pricing mechanism, in a bid to mitigate rising oil prices from the Iran war and the effective closure of the Strait of Hormuz.
Oil prices continued to rise after Iran rejected a ceasefire proposal from the United States set by U.S. President Donald Trump for Tehran to reach a deal or get “taken out”.
Retail gasoline and diesel ceiling prices rose by 420 yuan ($61.18) and 400 yuan per metric ton, respectively from midnight on 7th April, the National Development and Reform Commission (NDRC) said.
The adjustment will cost a private car owner about $2.4 more to fill a 50-litre tank of 92-octane petrol. Under its scheduled pricing mechanism, the increases would have been 800 yuan and 770 yuan, respectively, according to the statement.
The government is continuing to implement measures to control refined oil prices to mitigate the impact of rising international oil prices on the domestic market, the NDRC said.
The NDRC reviews and adjusts retail petrol and diesel prices every 10 working days nationwide. The adjustment rate reflects changes in international crude prices and accounts for average processing costs, taxes, distribution expenses and appropriate profit margins.