In its 11th fuel price increase since the end of last year, China will raise the retail prices of gasoline and diesel yet again from Wednesday, said the country's top economic planner.
According to the National Development and Reform Commission, Gasoline and diesel prices will increase by 390 yuan (about 57.8 U.S. dollars) and 375 yuan per tonne, respectively, reported Xinhua.
China's economic planner said that the price hike is based on recent changes in international oil prices. Under the current pricing mechanism, when international crude oil prices change by more than 50 yuan per tonne and remain at that level for ten working days, the prices of refined oil products such as gasoline and diesel in China are adjusted accordingly.
China's three leading oil companies -- China National Petroleum Corporation, China Petroleum and Chemical Corporation, and China National Offshore Oil Corporation -- have been asked to maintain oil production and facilitate transportation to ensure stable supplies.
China, the world's largest oil importer, earlier, lockdowns to combat an outbreak of the coronavirus are giving a blow to country's economy. The lockdowns in the Chinese provinces and cities including Beijing, Shanghai and Shenzhen, cut off travel between cities and production lines have stopped, as per the media portal.
The measures could be detrimental to global supply chains that are still struggling to recover from pandemic disruptions by slowing down key factory and transportation networks, according to the media outlet.
On February 24, 2022, Russia launched a military invasion of Ukraine and this has led to inflation in oil prices across the world. The price rise has affected the global economy. The war in eastern Europe continues to increase pressure on the oil price and this latest rise in fuel prices by China is yet another fallout of Russia's invasion of Ukraine.
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