China's top economic planner, the National Development and Reform Commission (NDRC), announced Monday a cut in the retail price of gasoline by 180 yuan ($29.02) per ton and that of diesel by 230 yuan per ton.

This is the 11th consecutive cut in gasoline and diesel prices since July 2014.

After the adjustment, the retail price of gasoline will drop by 0.13 yuan per liter and that of diesel by 0.2 yuan per liter.  The price adjustment takes effect starting Tuesday.

The gasoline prices in many areas in China have dropped below 7 yuan per liter so far, and after the current adjustment, prices in some parts may move below 6 yuan per liter, ­according to media reports.

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

Also on Monday, the Ministry of Finance (MOF) announced an increase in the fuel consumption tax, a move to protect the environment and save energy. The tax hike also takes effect starting Tuesday.

The tax on gasoline, solvent oil and lubricating oil will rise to 1.52 yuan per liter from 1.4 yuan. The levy on diesel, jet fuel and fuel oil will be increased from 1.1 yuan per liter to 1.2 yuan, the MOF said.

The NDRC's price adjustment for retail gasoline and diesel factored in the tax increase, otherwise the price reduction would have been even bigger, the NDRC said.

This is the third time that the government has raised the ­consumption tax. The first hike took place on November 28 and the second on December 13.

Jiang Kejun, a research fellow at the Energy Research Institute under the NDRC, said that cheap energy prices could dampen efforts to fight pollution, as lower prices tend to push up energy consumption, media reported in December.

But some analysts claimed that low gasoline quality, instead of low prices, is the major reason for pollution, according to media reports.