China will raise the retail prices for gasoline and diesel by 300 yuan ($47.53) per tonne starting February 8, the country’s top economic planner said on Tuesday.
The benchmark retail price of gasoline will be lifted by 0.22 yuan per liter and diesel by 0.26 yuan per liter, according to the National Development and Reform Commission (NDRC).
The latest price change, which is much expected by the market, comes amid rising pressures for the country’s refineries as the increasing international crude oil futures prices keep driving up their operation costs.
The price rise will help motivate the oil refineries, ensure supply in the domestic market, guide rational consumptions and promote emission cuts, an official with the NDRC said.
The move follows the previous change on October 8 last year, when the NDRC announced the first price cut in 16 months, taking the fuel prices off from record highs.
China’s current oil pricing system was introduced in May 2009. The system gives the NDRC the right to adjust domestic fuel, diesel and gas prices when average prices for Brent, Cinta, and Dubai crude oil move by 4 percent within 22 consecutive working days.