Prices at Shanghai's auction for car number plates fell this month from May's level, a sign that more expensive fuel may already be affecting people's desire to own cars.
The average price for a car plate fell 1,100 yuan (HK$1,249) to 34,947 yuan, the lowest level since March, local media said yesterday.
The drop followed a rise in petrol and diesel prices last week.
Shanghai defends the controversial auction system - the only one in the country - as a way of limiting the number of cars clogging the streets, though the city also earns massive revenue from the sales.
Beijing has announced that it will limit the number of cars on its streets from July 20 to September 20 based on odd and even number plates in a bid to reduce air pollution for the Olympic Games.
The lowest successful bid in Shanghai's plate auction this month was 33,900 yuan.
In January, auctioneers orchestrated a one-off drop in prices amid rising inflation and public criticism after the plates reached a record of more than 56,000 yuan in December.