The Chinese government intervened on Monday to cap domestic fuel price increases. Move intended to blunt the impact of skyrocketing global oil costs driven by the escalating conflict in the Middle East.
With the Strait of Hormuz a transit point for 20% of global energy supplies now a central theater in the war between the U.S., Israel, and Iran, the National Development and Reform Commission (NDRC) announced temporary regulatory measures to ensure economic stability.
Starting at midnight, maximum retail prices for gasoline and diesel will rise by 1,160 yuan and 1,115 yuan per metric tonne, respectively. Under normal pricing mechanisms, these hikes would have been nearly double (2,205 and 2,120 yuan).
The NDRC stated the intervention is necessary to “ease the burden on downstream users” and protect public welfare amid “abnormal” international price surges.
