China cuts retail fuel prices

A worker fills up a car with fuel at a gas station in Lianyungang city, East China's Jiangsu province, Feb 9, 2015. [Photo/Xinhua]

BEIJING - China will cut the retail prices of both gasoline and diesel for the fourth time this year from Friday due to a drop in global oil prices, the country's top economic planner said Thursday.

Gas prices will decrease by 250 yuan ($36.21) per ton, while the diesel price will be lowered by 235 yuan per ton, according to the National Development and Reform Commission (NDRC).

China adjusts domestic retail oil prices when international crude prices change by more than 50 yuan per ton within a 10 working-day period.

International crude oil prices fell in recent weeks as concerns over a global supply glut weighed on the market, and the NDRC price monitoring center said it expects the crude oil oversupply to continue.

The extension of output cuts by major crude producers is likely to raise international oil prices in the short term, but its long-term influence should be limited, said the center, predicting that crude prices will fluctuate.

The NDRC said it is closely monitoring the current pricing mechanism and will continue improvements based on market changes.