China raises fuel prices amid volatility in the oil market

Beijing, May 8 (EFE).- China announced this Friday that it will increase from Saturday the retail prices of gasoline and diesel to reflect the recent changes in international oil prices. According to a statement from the National Development and Reform Commission (NDRC), the country’s main economic planning body, gasoline and diesel will rise by 320 yuan (about $46.7) and 310 yuan (about $45.1) per ton, respectively. The portfolio explained that the increase responds to the strong volatility of international crude oil prices, whose average price in the last ten working days has remained above that recorded in the previous fixing cycle. The agency also urged the country’s major oil companies, including Sinopec and China National Offshore Oil Corporation (CNOOC), to organize production and transportation to ensure stable supply in the domestic market. He also asked local authorities to strengthen market supervision and sanction possible violations of price regulations. The regulator already announced a rise in gasoline and diesel prices in March for the same reason, which, according to local financial media, was the largest in almost four years, with increases of 695 yuan (100.6 dollars) per ton for gasoline and 670 yuan (97 dollars) for diesel. China revises retail gasoline and diesel prices approximately every ten working days, based on the evolution of international crude oil and taking into account factors such as processing costs, taxes, distribution, and margins. The adjustment occurs in a context of tensions in the Middle East that have raised concerns about the stability of the global energy supply.

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China has repeatedly warned about the impact that a prolonged blockage of the route would have on the global economy and on its own energy security, given that around 45% of its oil and gas imports pass through that maritime route.