Beijing has limited the amount by which the country’s fuel costs can rise, the government announced, to mitigate surging oil prices due to the Middle East conflict.
Global oil prices have soared as the conflict between the United States, Israel and Iran has centred around the Strait of Hormuz.
“To mitigate the impact of abnormal increases in international oil prices, ease the burden on downstream users, and ensure stable economic operations and public welfare, temporary regulatory measures have been adopted,” China’s state planner said in a statement yesterday.
The National Development and Reform Commission (NDRC) said it will hike the maximum retail prices for gasoline and diesel by 1,160 yuan (RM660) and 1,115 yuan (RM635) per metric tonne, respectively, starting from midnight.
The increase is around half of what it would have been under the government’s pricing mechanism, which would have seen gasoline and diesel prices rise by 2,205 yuan (RM1,265) and 2,120 yuan (RM1,207) per metric tonne, respectively, it added.
The NDRC routinely reviews gasoline and diesel prices and makes adjustments based on factors such as global crude prices.
In its last hike in March, the NDRC raised maximum retail prices for gasoline and diesel by 695 yuan (RM395) and 670 yuan (RM380) per metric tonne, respectively.
Meanwhile, the government has also urged all parties involved in the Middle East conflict, particularly the United States and Israel, to cease military operations, warning of a “vicious cycle” in a conflict that analysts say, if prolonged, could undermine global growth and weaken demand for Chinese exports.
“The one who tied the bell must be the one to untie it,” said Chinese special envoy to the Middle East, Zhai Jun, at a briefing after his shuttle diplomacy trip that included stops in Saudi Arabia, the United Arab Emirates and Kuwait.
China will maintain close communication with all parties concerned and make unremitting efforts to ease tensions and promote regional peace and stability, he said yesterday.
In a separate briefing, foreign ministry spokesperson Lin Jian cautioned that the use of force would only lead to a “vicious cycle” and that the conflict should not have been started.
“Should the hostilities continue to spread and intensify, the entire region will be plunged into chaos,” he said.
Trump on Saturday imposed a 48-hour deadline on Teheran to reopen the Strait of Hormuz to all shipping, threatening to destroy Iranian power plants otherwise.
Iranian attacks have effectively closed the key waterway which carries a fifth of global oil and liquefied natural gas, causing the worst oil crisis since the 1970s. — AFP/Reuters
