China cuts retail fuel prices

BEIJING -- China will lower retail prices of gasoline and diesel due to falling international crude prices.

The National Development and Reform Commission (NDRC), the national economic planner, announced Sunday that gasoline prices will be cut by 155 yuan (about $23.17) per tonne and diesel prices by 150 yuan per tonne from Monday.

Under the current pricing mechanism, if international crude oil prices change by more than 50 yuan per tonne and remain so for 10 working days, then refined oil products such as gasoline and diesel in China are adjusted accordingly.

This year the NDRC has cut retail fuel prices four times and raised them six times.

NDRC researcher Zhao Gongzheng said global crude oil prices are no longer rising due to market worries about an agreement on freezing production, rising yields in countries including Iran and weak U.S. demand.

"The prices will likely remain low in the short term, fluctuating between $40 to $50 per barrel," Zhao said.

The NDRC also asked the country's three state-owned oil giants to ensure supplies during the price downturn.