Media365
A steady stream of cars pulled into an ordinary petrol station in Beijing’s Chaoyang District early on Monday afternoon, keeping the pumps far busier than on a normal weekday as drivers rushed to refuel ahead of the year’s biggest price hike at midnight.
“I’m taking my lunch break to top up the tank quickly ahead of the price increase, as I fear long queues after work in the evening,” said Frank Jin, an office employee in Beijing.
China will raise refined oil prices at midnight, marking the fifth increase this year. Under the current pricing mechanism, domestic petrol and diesel prices would be increased by 2,205 yuan (US$320) and 2,120 yuan per tonne, respectively, according to a statement from the National Development and Reform Commission (NDRC) on Monday.
After a temporary control measure, actual domestic petrol and diesel prices would be increased by 1,160 yuan and 1,115 yuan per tonne, respectively, the statement said. The price control marks the first government intervention to mitigate the impact of rising international oil price since the current refined oil pricing mechanism was introduced in 2013.
Since the previous refined oil price adjustment in China on March 9, international crude prices have surged sharply due to escalating tensions in the Middle East, with regional oil prices hitting repeated record highs, according to the NDRC.
To cushion the impact of this abnormal rally and reduce burdens on downstream users, China would put in place temporary controls on domestic refined oil prices while keeping the existing pricing mechanism unchanged, the statement said.
