Retail prices of gasoline in China have been raised to at least the levels since 2006. Diesel fuel has been raised to the level for the first time in 10 years. It reflected the soaring crude oil prices following Russia’s invasion of Ukraine.
The National Development and Reform Commission of China (NDRC) announced on the 18th that it will raise the gasoline price by 750 yuan ($ 118) per ton and the diesel fuel price by 720 yuan. It will be the largest price increase since the introduction of the current pricing mechanism in 2013.
In Beijing, the price of gasoline will rise to 10,770 yuan per ton, and the price of diesel fuel will rise to 9,695 yuan. Local authorities have set different prices, but they will all raise prices.
Under China’s pricing mechanism, the retail price of fuel is assessed every 10 business days and reflects that price as long as the international price of crude oil remains in the range of $ 40- $ 130.
North Sea Brent futures rose to $ 139.13 a barrel on the 7th and then went down and closed at $ 106.64 on the 17th. Before the invasion on February 24, it was around $ 99.
Independent refineries in China are cutting production in response to soaring prices.
According to China’s energy consulting firm JLC, the occupancy rate in Shandong Province, which has many independent refineries, fell to 57.09% last week, the lowest level in two years.
Meanwhile, fuel demand has also been hit by the spread of the new coronavirus infection.
Alexander focuses on breaking news stories and ensuring we offer timely reporting on some of the latest stories released through market wires. He has previously spent over 5 years as a trader in us stock market and is now semi-retired. Now he works for investingbizz.com specializing in quicker moving active shares with a short term view on investment opportunities and trends. He covers financial sector news.