City to Cut Down Gasoline Prices as Global Crude Oil Prices Decreases
The city will likely to cut down on their gasoline and diesel prices as global oil prices decreased over the past week. So far china has cut retail gas prices around six times since July and the last price cut were done in October 17.the new pricing plan came to effect last year which stipulates domestic fuel prices are being adjusted when the international crude oil priced has been changed by more than 50 yuan per ton for 10 working days.
Price analyst stated that the retail prices of crude oil is expected to decrease again by 285 yuan per ton which means that the retail prices of a liter of a No. 92 gasoline and diesel fuel will decrease by .22 yuan and .24 yuan respectively. Since the No. 92 gasoline is the most commonly used fuel it is likely to fall below 7 yuan per liter. These drop in fuel price will benefit car owners and to transportation and logistics enterprises as well.
Fuel costs accounts for a third of the whole operating costs of logistics companies meaning that the drop will be helping these enterprises save money. Furthermore the transportation industry wherein a heavy vehicle with a 50 ton capacity consumes 38 liters of diesel fuel for every 100 kilometers. When diesel prices drops by .25 yuan per liter, this means a 475 yuan saving s per truck in ten working days.
Lowering gasoline prices also allow air companies to cut down on expenditures that are related to petrochemical industry, but enterprises that refine crude oil will be hurt and is expected to see their revenue drop and possibly hinder development.