China cuts retail fuel prices for third time this year

BEIJING - China will cut the retail prices of both gas and diesel for the third time this year from Wednesday due to price declines in the international market, the country's top economic planner said Tuesday.

Gasoline prices will decrease by 230 yuan ($33.4) per ton, while the diesel price will be lowered by 220 yuan per ton, the largest price cut this year, according to the National Development and Reform Commission (NDRC).

China has a pricing regime that adjusts domestic retail oil prices when international crude prices change by more than 50 yuan per ton over a period of 10 work days.

Due to higher output and growing inventory in the United States, oil prices on international markets fell sharply this month to the level before Organization of the Petroleum Exporting Countries (OPEC) members agreed to cut oil output to curb global oversupply in November last year, according to the NDRC price monitoring center.

International oil prices will be kept at a relatively low level due to oversupply in the short term, said the center.

So far this year, China has also raised retail oil prices twice, leading to an accumulated reduction of gas and diesel prices by 265 yuan and 255 yuan per ton, respectively.