Beijing cushions impact amid jump in fuel prices
China intervened to cushion rising fuel prices on Monday, increasing regulated ceiling prices for retail gasoline and diesel, but limiting the hike to about half what would normally be applied under the government's pricing mechanism. The measures have been adopted to mitigate the impact of the abnormal rise in international oil prices, reduce the burden on downstream users and ensure stable economic operation and social livelihood, the National Development and Reform Commission (NDRC) said in a statement. Maximum retail prices for gasoline and diesel will go up by 1,160 yuan and 1,115 yuan per tonne, respectively, starting from Monday midnight, it said. The adjustments brought on by rising oil prices linked to the US-Israeli attacks on Iran and retaliations by Tehran were still the largest on record, lifting price limits close to levels seen in 2022 following the start of the Russian-Ukrainian conflict. The NDRC reviews retail gasoline and diesel prices every 10 working days and applies adjustments reflecting changes in international crude oil prices, while taking into account average processing costs, taxes, distribution expenses and appropriate profit margins. Under the current pricing mechanism, gasoline and diesel prices would have been set to rise by 2,205 yuan and 2,120 yuan per tonne, respectively, it said. "To cushion the impact, ease the burden on downstream users, and support economic and social stability, authorities introduced temporary controls within the existing pricing framework," the state's planner said in an announcement. Oil prices rose on Monday after Iran's Revolutionary Guards said they would target Israel's power plants and those supplying US bases in the Middle East in retaliation against any attack on its electricity sector. (Xinhua/Reuters) Edited by Tony Sabine