China Caps Fuel Price Increase for Fifth Time Since Iran War Began

China will raise retail prices for gasoline and diesel in line with gains in global oil markets, but will limit the size of the increase to cushion the effect on the domestic economy, the National Development and Reform Commission said on Thursday.

Under the adjustment, which takes effect on September 25, gasoline prices will rise by 395 yuan per metric ton and diesel by 385 yuan per ton. The country's scheduled pricing mechanism would have produced larger increases of 830 yuan and 800 yuan respectively, the commission said in a statement.

This is the second consecutive adjustment in which Beijing has capped the increase. The previous revision came on September 11, and the move marks the fourth time the government has limited price rises since the US-Israeli war on Iran began on February 28.

Following the latest change, retail gasoline prices will stand 24% above the levels set at the last adjustment before the conflict started, while diesel prices will be 26% higher.

The decision reflects an effort to balance domestic fuel costs against movements in global crude markets, with the commission opting to absorb part of the increase rather than pass it on in full to consumers.