China cuts retail oil prices

China will lower the retail prices of both gas and diesel by 85 yuan (12.3 U.S. dollars) per tonne from Wednesday. [File photo: baidu.com]

China will lower the retail prices of both gas and diesel by 85 yuan (12.3 U.S. dollars) per tonne from Wednesday due to falling international prices, according to the country's top economic planner.

It will be the second oil price cut this year, according to the National Development and Reform Commission (NDRC).

China has a pricing regime that adjusts domestic retail oil prices when international crude prices change by more than 50 yuan per tonne during a time span of 10 work days.

Influenced by increasing crude oil reserves in the United States, growing shale oil output and a stronger dollar, international oil prices have fallen sharply recently.

Weak demand will keep oil prices at a relatively low level in the short term, said the NDRC price monitoring center.

So far this year, China has also raised retail oil prices twice, leading to an accumulated reduction of gas and diesel prices both by 35 yuan per tonne.