29 Sep 2009 13:51

China cuts fuel prices by $27 per ton

Shanghai. September 29. INTERFAX-CHINA - China's National Development and Reform Commission (NDRC) announced on Sept. 29 that it will cut the retail prices of gasoline and diesel by RMB 190 ($27.82) per ton, or 2.5 percent, as of Sept. 30.

The price cut will lower the retail prices of RON 90-grade gasoline and 0#-grade diesel by RMB 0.14 ($0.02) per liter and RMB 0.16 ($0.023) per liter, respectively, according to the NDRC. The price cut marks the seventh time the country has adjusted retail fuel prices since it implemented a new fuel pricing system earlier this year.

Zhao Jinlong, an oil analyst with Pec365, told Interfax that the price cut is about as conservative as when the NDRC raised fuel prices at the beginning of this month.

International crude oil prices have fallen by about 5.6 percent on average over the last 22 days to $67.62 per barrel. Under China's new fuel pricing system, the NDRC will consider adjusting fuel prices when the average price of Brent, Dubai and Cinta crude oil rises or falls by more than 4 percent over a period of 22 working days.