China cuts gasoline and diesel prices, the 13th consecutive drop

Published: Jan 28,2015 08:18:27


China cut the price of gasoline by 365 yuan/t ($58.6/t) and that of diesel by 350 yuan/t, effective on January 27, as international oil prices have kept falling recently, Xinhua reported, citing China's top economic planner.

This is the thirteenth consecutive cut in gasoline and diesel prices since July 2014.

After the adjustment, the retail price of gasoline dropped by 0.27 yuan per liter and that of diesel by 0.3 yuan per liter.

The National Development and Reform Commission (NDRC) announced the price adjustment on January 26.

The fuel surcharge for domestic flights has also been lowered five times since September 2014 amid dropping oil prices.

The current pricing mechanism allows the NDRC to adjust oil prices every 10 working days based on changes in international oil prices.

The gasoline prices in most areas in China will drop below 6 yuan per liter after the adjustment, marking a near six-year low, insiders said.

International oil prices are not very likely to rebound in a short term as major oil-producing countries refuse to cut production, such as Russia and members of the Organization of Petroleum Exporting Countries. Also, oil demand remains weak amid the sluggish world economy.

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