China to further reduce retail oil prices

China on Friday announced a third straight cut in retail prices of oil products in this month, the largest reduction since 2008, the top economic planner said Friday.

A staff member fills up a car at a gas station in Nantong, Jiangsu Province, on Friday, November 30, 2018. [Photo: VCG]

Starting Saturday, the prices of gasoline and diesel will be lowered by 540 yuan (about 78 U.S. dollars) and 520 yuan per tonne, respectively, according to the National Development and Reform Commission (NDRC).

Under the current pricing mechanism, if international crude oil prices change by more than 50 yuan per tonne and remain at that level for 10 working days, the prices of refined oil products in China will be adjusted accordingly.

Global oil prices went down due to increased output from Saudi Arabia, forecast-beating U.S. stockpile and softer-than-expected U.S. sanctions against Iran, the NDRC price monitoring center said, predicting the weakness will continue.

The NDRC has asked major Chinese oil companies, including China National Petroleum, China Petrochemical and China National Offshore Oil, to ensure a stable supply and implement the pricing policy.

The economic planner said it would closely monitor the effects of the current pricing mechanism and make improvements in response to global fluctuations.