Uncertainty leads to highest gas price increase of the year
China raised the retail price of gasoline and diesel from Tuesday, marking the highest oil price increase so far this year.
The retail prices of gasolines and diesel has been raised by 270 yuan (US$40.80) and 260 yuan per ton respectively, the National Development and Reform Commission said in a statement.
The main Chinese oil companies have raised oil prices accordingly. In Shanghai, price of 92 gasoline and diesel rose by 0.22 yuan per litre, while 95 will rise by 0.23 yuan per litre.
The oil policy is set by the NDRC on the basis of the rise in international oil prices and the current pricing mechanism for refined oil.
The rise in international oil prices mostly comes from the uncertainty in Iranian oil supply due to the breakdown of the Iranian nuclear deal.
However, it has little prospect of continuing the rise in the next price cycle, oil analyst Xu Na said.
