Gas prices fall on back of global decline

Shanghai will cut retail prices of gasoline and diesel from Thursday, with the cost to fuel a private car dropping by around 7.50 yuan (US$1.20) yuan.

The Shanghai Development and Reform Commission just announced that the ceiling price for 92-octane gasoline will be 6.71 yuan per liter, down from 6.86 yuan; a liter of 95-octane gasoline will sell at 7.14 yuan, dropping from 7.30 yuan; and diesel will be 6.33 yuan per liter, down from 6.49 yuan.

The measure will take effect from midnight Wednesday, thus filling a private car with a 50 liter tank with 92-octane gasoline will be about 7.50 yuan cheaper from tomorrow.

It is the second price cut this year after the last cut on February 9, with China adjusting retailing prices of refined oil prices every 10 working days following the crude fluctuations.

Global crude prices have dropped over the past two weeks, with the United States adding one drilling rig into operation last week to push up supply. The number of rigs in operation there has been 799, breaking the last record set in April 2015.