A screenshot of China's National Development and Reform Commission's official WeChat account

China's National Development and Reform Commission (NDRC), China's top economic planner, said on Monday it would adopt temporary regulatory measures on domestic refined oil prices. 

Under the current pricing mechanism, gasoline and diesel prices (standard products) would have been raised by 2,205 yuan ($305) and 2,120 yuan per ton respectively as of Monday, but would actually be increased by 1,160 yuan and 1,115 yuan after the adjustment (starting Tuesday), according to NDRC, China's top economic planner.

Since the previous adjustment of domestic refined oil prices on March 9, international crude oil prices have surged sharply, driven by escalating conflicts between the US, Israel and Iran, with crude oil prices in the Middle East region continue to hit record highs.

To cushion the impact of the abnormal spike in global oil prices, ease the burden on downstream users, and ensure stable economic operations and public welfare, NDRC has introduced temporary regulatory measures on domestic refined oil prices within the existing pricing mechanism framework, according to NDRC.

The NDRC vowed to guide refiners and distributors to step up production, logistics and supply arrangements to ensure market supply, while working with relevant authorities to strengthen market supervision and inspections. Violations such as non-compliance with state pricing policies will be strictly penalized to safeguard market order and protect consumer interests, according to NDRC.

According to a Xinhua News Agency's Monday report, in recent years, refined oil prices have been adjusted in line with the current pricing mechanism. This marks the first regulatory intervention since the mechanism was introduced in 2013.

Experts said the move represents a timely and robust response to the sharp rise in global oil prices, and will play a key role in ensuring stable domestic economic operations, according to Xinhua.

The temporary regulatory measures are aimed at easing the burden on downstream users, effectively limiting the increase in domestic gasoline and diesel prices to 1,160 yuan and 1,115 yuan per ton, respectively—1,045 yuan and 1,005 yuan less than it would have been increased -- equivalent to about 0.85 yuan less per liter nationwide on average, China Media Group reported on Monday.

For private car owners, based on a 50-60 liter fuel tank, filling up with 92-octane gasoline would cost 40-50 yuan less per tank; for heavy truck drivers, based on a 400-600 liter tank, the savings would amount to 300-500 yuan per fill-up, the report said.

Global Times