China is raising from Wednesday the retail prices of gasoline and diesel to reflect the recent increase in international crude oil prices, the Xinhua news agency reported on Tuesday, citing the top economic planner of the world’s second-largest economy.
Beginning on April 17, retail gasoline prices will be raised by $27.60 (200 Chinese yuan) per ton, and diesel prices will go up by $27 (195 yuan) per ton, according to a decision of China’s National Development and Reform Commission (NDRC).
Under the current pricing mechanism for retail fuel prices, China is regularly adjusting the prices of gasoline and diesel in lockstep with changes in international crude oil prices.
China’s oil refiners, as well as the largest state-controlled oil companies – China National Petroleum Corporation (CNPC), the China Petrochemical Corporation, or Sinopec, and China National Offshore Oil Corporation (CNOOC) – have been directed by the Chinese economic planning body to maintain oil production and facilitate transportation to ensure stable supplies.
As the key international benchmarks rose this year, China has already raised retail gasoline and diesel prices several times so far in 2024. The latest increase was made earlier this month, as Brent Crude rallied toward $90 per barrel.
Earlier this year, China National Petroleum Corporation predicted that oil product demand in the country could peak by next year, driven by the progress of the energy transition. Demand for fuels specifically, is seen starting to decline from 2030, CNPC’s Economics and Technology Research Institute has said. However, oil-derived fuels will remain the most used until 2035.
Oil demand, meanwhile, broke yet another record last year and is seen remaining strong this year as well amid signs of acceleration in economic activity. Per CNPC data, oil demand in China last year rose by 11.5% on the year, with oil product demand up by 9.5%.
By Charles Kennedy for Oilprice.com
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