Gas Prices Set to Increase in September
The government is now planning to raise gasoline and diesel prices next month as price for crude oil has risen. Based on the 22 day moving price average of Brent, Dubai and Cinta was at 4.25 percent higher than the level when China last raised it prices.
the increase is set to be done mid September a month after the last price increase that was done in August based on the one month review period. The increase in the benchmark crude prices is more than 4 percent over the 22 working day period that usually triggers a hike in the current pricing regime in China even when the government sometimes postpones any increase when it’s threatened with inflation pressures.
The country’s annual consumer inflation was at a 30 month low of 1.8 percent in July compared to 2.2 percent in June. China is now planning a revamp of its current fuel pricing scheme that will better reflect refining costs along with plans of lowering trigger costs, shortening the adjustment period and changing the composition of crude prices that is linked to pump prices.