China Raises Gasoline Prices Amid Inflation... 12th Increase This Year

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[Asia Economy Beijing=Special Correspondent Kim Hyun-jung] China has raised the prices of refined oil products such as gasoline and diesel distributed domestically, citing the rise in international oil prices. The price of gasoline is approaching 9 yuan per liter (ℓ), recording around 1,700 Korean won.

On the 24th, the National Development and Reform Commission announced on its website that the price of gasoline per ton (t) will increase by 185 yuan (approximately 36,446 won), and diesel prices will rise by 175 yuan. Accordingly, the price of China’s 95-octane gasoline will increase to 8.83 yuan per liter (ℓ), and 92-octane gasoline will rise to 8.31 yuan. Diesel will be adjusted to 7.97 yuan per liter.

Local media estimated that with this price hike, filling a 50ℓ fuel tank of a typical passenger car with 95-octane fuel will require 7.5 yuan more than before. The commission explained, "Refined oil prices are being adjusted upward in response to recent fluctuations in international oil prices," adding, "Price linkage and subsidy policies will be implemented according to current regulations."

Since 2013, China has adjusted retail fuel prices every 10 business days in connection with international oil prices. Due to the continued surge in oil prices, the commission has already implemented the 12th price increase this year.

Following the increase, the retail gasoline price ceiling in Beijing is about 10,385 yuan per ton, and diesel is around 9,320 yuan. The region with the highest ceiling is Chengdu, with gasoline at 10,570 yuan and diesel at 9,520 yuan. The lowest is the Xinjiang Uygur Autonomous Region, with prices at 10,130 yuan and 9,180 yuan respectively.

This measure is expected to put upward pressure on prices within China. According to the National Bureau of Statistics, China’s cumulative Consumer Price Index (CPI) for the first to third quarters of this year rose 2.9% year-on-year. The CPI increased by 1.1% in the first quarter, 2.3% in the second quarter, and 2.6% in the third quarter, approaching China’s annual inflation control target of within 3%. In September, the CPI growth rate reached 2.8%, marking the highest level in two years and five months since April 2020 (3.3%).

Notably, energy prices rose 13.2% through the third quarter, accounting for more than 40% of the overall CPI increase. Gasoline prices rose 24.8%, diesel 27.1%, and LPG prices jumped 22.4%. Prices of coal and vehicle natural gas also increased by 6.9% and 5.5%, respectively.

This content was produced with the assistance of AI translation services.