China will cut state-set fuel prices for the first time since July, the government said on Thursday, further easing inflationary pressure.
The benchmark price for petrol will drop 3.5 per cent to 8,530 yuan (HK$10,600) per tonne while diesel will fall 3.7 per cent to 7,720 yuan per tonne from Friday, the National Development and Reform Commission said.
The cut will see petrol prices at the pump fall by 0.23 yuan per litre and diesel by 0.26 yuan per litre, in reflection of declining international crude prices, the top economic planning body said.
The commission said international crude prices had trended down since it last raised domestic fuel prices in September, due to worries over the US economy and a slow recovery in the global economy.
The agency can adjust fuel prices when international oil prices move by more than 4 per cent over a 22-working day period.
China is the world’s second largest consumer of oil, but the government keeps a tight lid on domestic retail prices of fuel, in part to ease social discontent.
