Fuel Prices Set to Rise: Petrol and Diesel Costs Increased

The latest adjustment to domestic fuel pricing has been announced, with notable increases set to take effect for both petrol and diesel.

Effective from 24:00 on August 28th, the maximum retail prices for standard petrol and diesel will be raised by 375 yuan and 360 yuan per tonne, respectively. This decision follows fluctuations in the international oil market and aligns with the country's pricing mechanism which reviews fuel prices every 10 working days.

The pricing adjustment is calculated by comparing the average price of a basket of international crude oils over the 10 working days preceding this adjustment against the average from the previous 10 working day period, rather than reacting to single-day prices or specific oil types.

An industry analyst from Longzhong Information noted that since the last adjustment on August 14th, international crude oil prices have seen a pattern of volatility. Factors such as the United States' intention to intensify economic sanctions on Iran and the stalled progress in US-Iran negotiations contributed to initial gains, which then gave way to a pullback before recently rebounding again. Consequently, the 10-day average price of the international crude basket for this pricing cycle exceeded the previous period's average, triggering the corresponding increase in domestic fuel prices.

For consumers, this translates to a rise of approximately 0.30 yuan per litre for 92-octane petrol and 0.31 yuan per litre for 0-diesel at the pump.

Authorities have instructed major oil companies such as PetroChina, Sinopec, and CNOOC, along with other refining enterprises, to organize production and transportation efficiently to guarantee stable market supply and strict adherence to the national pricing policy. Local government departments have also been urged to intensify market supervision and rigorously penalize any violations of the price policy to maintain normal market order.

Consumers who encounter price irregularities can report them through the 12315 platform. Meanwhile, the price monitoring center under the National Development and Reform Commission has indicated that significant uncertainty persists regarding geopolitical tensions, and close attention should continue to be paid to how the situation between the US and Iran might impact international oil prices going forward.