Wednesday 29 October 2014

China to Further Cut Petrol, Diesel Price

China is likely to reduce petrol and diesel prices again as global crude prices continue their southern journey. Data from JYD suggests that gasoline and diesel retail prices are likely to be cut by between 290 yuan and 350 yuan per tonne.

Last week, light, sweet crude for December delivery moved down $1.08 to settle at $81.01 a barrel at the New York Mercantile Exchange, while December Brent crude dropped 70 cents to close at $86.83 a barrel.

The National Development and Reform Commission (NDRC), China's top economic planner, has cut retail gas prices for six times since the beginning of July, the last cut on Oct. 17.

China adopted a pricing regime last year that adjusts domestic fuel prices when international crude prices change by more than 50 yuan per tonne for 10 working days. This currently represents a change of around 1.15 dollars per barrel, depending on the grade of crude.

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