MOTORISTS will pay less at the pumps from today after fuel prices have been cut by more than 3 percent, the first cut since July, in response to lower international crude oil prices.
Gasoline drops by 310 yuan (US$49.69) a ton and diesel by 300 yuan a ton, effective from today, the National Development and Reform Commission, which sets energy prices in China, said yesterday. That represents average cuts of 3.2 percent and 3.4 percent respectively.
In Shanghai, the ceiling retail price for 93-octane gasoline is now 7.75 yuan per liter, down from 8 yuan, 97-octane gasoline falls to 8.24 yuan from 8.51 yuan and zero-grade diesel is now 7.66 yuan, down from 7.92 yuan, the local price authority said.
Fuel prices vary from province to province.
Under the NDRC's pricing mechanism, fuel prices can be adjusted when the 22-day moving average of a basket of international crude changes more than 4 percent from the previous adjustment, though it also looks at other factors, such as inflation.
The basket of crude fell 4.36 percent as of Wednesday since China last adjusted prices on September 11, according to consultancy C1 Energy, due to worries over the "fiscal cliff" in the US - the combination of expiring tax cuts and across-the-board government spending cuts due on December 31 - as well as weak demand from major economies including China and Japan.
The September price adjustment raised gasoline prices by 550 yuan per ton and diesel by 540 yuan.
"I heard days ago that the NDRC may cut gas prices really soon, so I filled up only half the tank during each refuel," a Shanghai taxi driver surnamed Zhang said yesterday. "I'm almost running out of oil and the announcement is finally there."
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