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China likely to cut retail gas prices again

(Xinhua) Updated: 2015-01-25 19:57

BEIJING -- With global crude prices falling, the market expects another cut in China's retail gasoline and diesel prices on Monday.

In the past nine working days crude oil prices have fallen by 11.2 percent, suggesting that gasoline and diesel retail prices are likely to be cut by about 350 yuan ($57.1) per ton.

On Jan. 12, the retail prices of gasoline and diesel were cut by 180 yuan ($29.30) and 230 yuan per ton, the 12th cut since July 2014.

China adopted a pricing regime last year that adjusts domestic fuel prices when international crude prices change by more than 50 yuan per tonne for 10 working days. This currently represents a change of around $1.15 per barrel, depending on the grade of crude.

It is unclear whether authorities will also raise the tax on oil products again. Tax authorities have raised the levy on oil products three times recently -- on Nov 29, Dec 13 and Jan 12.

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