China is poised for its second major fuel price reduction of the year, with the new pricing window set to open at midnight on June 4th, marking the 11th adjustment cycle. With only one statistical day remaining in the current pricing period, the adjustment data is largely finalized.
Effective from midnight tonight, the retail prices for gasoline and diesel will be lowered by 525 yuan and 505 yuan per tonne, respectively. On a national average basis, this translates to reductions of 0.41 yuan per liter for 92-octane gasoline, 0.44 yuan per liter for 95-octane gasoline, and 0.43 yuan per liter for 0-grade diesel.
To illustrate the savings, filling a standard 50-liter tank with 92-octane gasoline will now cost approximately 20.5 yuan less.
Monitoring data indicates that international oil prices experienced a volatile cycle, initially declining before rebounding, with the average price for this period falling below the previous cycle's level. The primary driver behind these fluctuations is the evolving situation between the United States and Iran.
Recent developments, including Iran's suspension of dialogue with the U.S. and plans to potentially block the Strait of Hormuz, countered by U.S. statements about reaching an agreement "within a week," have heightened uncertainty. This increased unpredictability in negotiations is expected to amplify short-term volatility in global oil markets, necessitating close attention to future developments.
So far this year, the domestic fuel market has witnessed ten pricing adjustments, resulting in a pattern of eight increases, one decrease, and one instance where prices remained unchanged. Following tonight's adjustment, the 2026 pricing landscape will shift to eight increases, two decreases, and one unchanged period.
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