China continues suspension of retail fuel price adjustment

BEIJING - China's top economic planner said Tuesday that it will continue suspending price adjustment of domestic refined oil products before a new pricing mechanism is introduced.

A special meeting was hosted by the National Development and Reform Commission (NDRC) the same day to invite opinions of relevant departments and work units on a new pricing mechanism.

The NDRC also plans a series of symposiums to solicit opinions from experts, industrial associations, petroleum enterprises and drivers.

On Dec 15, the NDRC announced that improvement would be made on the pricing mechanism of refined oil products and it would suspend adjusting prices of gasoline and diesel.

Under a mechanism that became effective in March 2013, prices of refined oil products are adjusted when international crude prices translate into a change of more than 50 yuan per ton for gasoline and diesel prices for a period of 10 working days.

The NDRC said on Dec 15 that it would not adjust fuel prices, though a price cut was expected as international prices fell.

"Emissions from automobiles are one of the major causes of air pollution," the NDRC said then.

"Giving full play to the leverage effect of refined oil prices is an important way to promote energy conservation and tackle air pollution."

According to the NDRC, suspension of price adjustment is expected to continue before the adoption of new rules.