The retail prices of gasoline and diesel in China will increase starting Tuesday due to rising prices in the global market and the weakening of the Chinese Yuan against U.S. Dollar in the international trade.
The National Development and Reform Commission (NDRC) of China reported that retail prices of gasoline and diesel will raise by 70 Chinese Yuan (or around US$10) per ton.
China's NDRC informed the public that, if the if the price of international crude oil will change by more than 50 Chinese Yuan per ton and will linger thereat for ten more days, the prices of gasoline and diesel in China will be adjusted correspondingly.
The NDR attributed the rising prices of gasoline and diesel in China's market due to the fluctuating oil prices in the global market. It also cited the flagging of the Chinese Yuan currency against the US Dollar currency as another factor in the rise of diesel and gasoline prices in China.
Because of the unstable price of international crude oil, China's NDRC has requested major oil companies in China to guarantee the public for a stable supply of crude and refined oil in the market as well a stable price in diesel and gasoline.
Among major oil companies in China are the China National Offshore Oil, China National Petroleum, and China Petrochemical.
Meanwhile, China's NDRC has assured the public that it will continuously closely monitor the effects of the current pricing mechanism and the increase in retail prices of gasoline and diesel in the Chinese market. The NDRC said that it will make the appropriate changes immediately if there are changes in the global fluctuations of international crude oil's prices.
In July, the retail prices of gasoline and diesel in China were raised by 270 Chinese Yuan and 260 Chinese Yuan, respectively, per ton.
According to some experts in the energy and oil industry, the recent hike in the biggest increase in crude oil prices since December 14, 2016.
The global supply of crude oil was adversely affected by Iran-U.S. conflict over nuclear power agreement. Iran is one of the world's biggest producer of crude oil. Meanwhile, Russia and key members of the Organization of the Petroleum Exporting Countries (OPEC) are taking necessary measures to compensate for a potential decline in Iranian crude supplies.
Economic analysts also said that the ongoing "trade war" between China and the U.S. has contributed to the fluctuating prices of international crude oil. Recently, China declared that it is planning to impose additional tariffs on U.S. Liquefied Natural Gas and crude oil.
