May 8, 2012
Translated By Zhu Na
UPDATE: From Thursday May 10, the National Development and Reform Commission lowered the price of gasoline by 0.24 yuan a liter and diesel by 0.26 yuan a liter.This was the first cut for seven months.
National Development and Reform Commission announced that from 0:00 on the May 10, the domestic prices of refined oil will be lowered, petrol cut by 330 yuan per ton, equivalent to 0.24 yuan per liter; diesel cut by 310 yuan per ton, equivalent to 0.26 yuan per liter.This is the first time to cut the domestic refined oil prices in seven monthNational Development and Reform Commission announced that from 0:00 on the May 10, the domestic prices of refined oil will be lowered, petrol cut by 330 yuan per ton, equivalent to 0.24 yuan per liter; diesel cut by 310 yuan per ton, equivalent to 0.26 yuan per liter.This is the first time to cut the domestic refined oil prices in seven monthsChinese motorists will see gasoline and diesel prices lowered later this week, several monitoring organizations told the Beijing Times.
China changes the prices of refined oil products when the international weighted average price of crude changes by more than four percent for 22 straight working days.
Wang Jintao (王金涛), an analyst from chem365.net predicted that if international oil prices don't rise sharply, then the conditions for adjusting domestic refined oil price will be satisfied in the early hours of Wednesday May 9.
Even if international crude prices rises by $4 per barrelfrom their current price, it will only be another four working days before the conditions for a price cut are met.
“It is hard for international oil prices to rise by $4 a barrel increase in two or three days, so the refined oil price adjustment this week is a certainty.”
Within the industry, it is widely expected that the adjustment will be between 200 yuan and 300 yuan a ton.
That would mean that the price of a liter of light diesel would fall by up to 0.26 yuan cheaper.
Premium grade gasoline, which currently costs 8.33 yuan per liter in Beijing, would become around 0.24 yuan cheaper.
Links and Sources
Beijing Times 国内油价9日前后可能迎来年内首次降价
The Economic Observer 国内成品油价格有望首次下调
