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China Imposes Temporary Controls to Curb Fuel Price Jump

The move seeks to blunt a crude-price spike tied to Middle East tensions.

Overview

  • The National Development and Reform Commission introduced temporary controls on refined-fuel prices in response to a sharp crude surge tied to intensifying USIsraelIran tensions.
  • Under China’s pricing mechanism, gasoline and diesel would have risen by 2,205 and 2,120 yuan per ton, but the agency set smaller increases of 1,160 and 1,115.
  • That translates to about 0.87 yuan more per liter for gasoline and 0.95 for diesel, which is roughly 0.85 yuan less than an unadjusted rise.
  • For private car owners, a 50–60 liter fill of 92-octane now costs 43.5–52.2 yuan more than before the change, which is still 40–50 yuan less than without the control.
  • Regulators ordered producers and sellers to secure supply and warned of tougher inspections and penalties for breaking state price rules.