Under the pricing mechanism applicable now in the country, if international crude oil prices change by more than 50 yuan per tonne and remain at that level for 10 working days, the prices of refined oil products like gasoline and diesel will be adjusted accordingly.
China’s logistics sector costs will drop further as the National Development and Reform Commission announced a cut in retail prices of gasoline and diesel from August 10. The prices will go down by 130 yuan per tonne and 125 yuan per tonne respectively. It is the fifth reduction in gasoline and diesel prices this year and the fourth in a row since June 28.
The country’s three biggest oil companies—the China National Petroleum Corporation, the China Petrochemical Corporation and the China National Offshore Oil Corporation—and other oil processing companies, should maintain oil production and facilitate transportation to ensure stable supplies, NDRC was quoted as saying by an official news agency.
International oil prices will likely remain weak in the short term, NDRC’s price monitoring centre said.
Fibre2Fashion News Desk (DS)