FX.co ★ China Caps Fuel Price Hikes to Cushion Global Oil Volatility

China will maintain controls on retail gasoline and diesel prices starting Wednesday, April 8, to cushion the domestic market from volatile global oil prices, the National Development and Reform Commission announced.

The decision comes after “significant fluctuations” in international crude prices since late March. Under China’s pricing mechanism, domestic fuel prices would have risen sharply—by CNY 800 per tonne for gasoline and CNY 770 per tonne for diesel. However, the government capped the actual increases at CNY 420 and CNY 400 per tonne, respectively.

Authorities have also directed major state-owned oil companies—China National Petroleum Corporation, China Petrochemical Corporation, and China National Offshore Oil Corporation—along with other refiners, to maintain production and logistics operations to ensure a stable domestic fuel supply.