Retail Gasoline Prices Decreases as International Crude Prices Drops
According to China’s largest oil refiner Sinopec, retail prices of gasoline will decrease between 0.29 yuan and 0.34 yuan per liter in Shenzhen. Retail price for the No. 92 gasoline the most commonly used fuel will decrease from 6.09 yuan to 5.80 yuan per liter. Price for the No. 95 gasoline drops down to 6.28 yuan per liter and the No. 98 gasoline sell for 6.73 yuan per liter. Meanwhile retail price for diesel is now at 5,24 yuan per liter.
The last price cut that took effect was in January 13 with a rise in consumption tax for oil products. Then yesterday the National Development and Reform Commission announced a plan to cut the retail price for gasoline by 365 yuan per ton and diesel by 350 yuan per ton. This will be the 1th consecutive fuel price cut since July of last year. Even with the continuing price decrease, several drivers still want cheaper gasoline.
Gasoline prices in China are still high and sold at a reasonable price of 3.50 yuan per liter. Price cuts must keep pace with the sharp price decline of the international market. In just nine days crude oil prices fell by 11.2 percent and some say that domestic fuel prices should change when the price in the international market changes as well.
Last year China adopted a pricing system that adjusts domestic fuel prices when international crude prices changes by more than 50 yuan per ton.