China Caps Fuel Price Rise for Third Time Since Iran War Began
China has limited its latest fuel price increase, the third such cap since the Iran war began, to cushion consumers from rising international oil prices.
China has moved to soften the impact of rising global crude prices on its domestic market, capping the latest increase in retail fuel prices for the third time since the Iran war began.
The state planner said in a statement on Friday that gasoline and diesel prices will rise by 260 yuan and 250 yuan per metric ton, respectively, with the new rates taking effect on September 12.
Under China's scheduled pricing mechanism, the increases would have been larger — 435 yuan per ton for gasoline and 420 yuan per ton for diesel — but authorities scaled them back to limit the burden on consumers and businesses.
Following the adjustment, retail prices for gasoline and diesel will stand 19% and 21% higher, respectively, than the levels set in the final price revision before the conflict began.
The decision marks the third occasion since the outbreak of the Iran war that Beijing has intervened to restrain fuel price increases, as it seeks to balance its regulated pricing system against volatile international energy markets.