China raises regulated gasoline and diesel prices while limiting the increase
The Facts
- China raised its regulated retail ceiling prices for gasoline and diesel effective from midnight on March 23.
- The National Development and Reform Commission said the increase was smaller than what the normal pricing mechanism would have produced.
- The official increase was 1,160 yuan per metric ton for gasoline and 1,115 yuan per metric ton for diesel.
- Officials said the temporary adjustment was intended to cushion the impact of unusually high international oil prices on the domestic market.
- The NDRC said oil companies should organize production and transport to keep supply stable, and regulators should step up inspections of price violations.
- Several reports said the adjustment was linked to a sharp rise in global oil prices driven by the conflict involving Iran.
Context
How much smaller was the increase than the normal formula would have required?
Reports said the normal mechanism would have called for increases of 2,205 yuan per ton for gasoline and 2,120 yuan per ton for diesel, so the temporary adjustment left the domestic price rise about 1,045 yuan and 1,005 yuan lower than that formula would have produced 东方财富网,驱动之家,早报.
Why did China say it was using a temporary adjustment?
The NDRC said the temporary measure was meant to reduce the shock from unusually high international oil prices, ease the burden on downstream users, and help keep the economy and daily life stable China News,东方财富网,早报.
What else did Chinese authorities say they would do after the price change?
Officials said major oil companies should ensure production and transport are well organized, while local regulators should intensify market checks and punish violations of state pricing rules China News,Reuters,早报.
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