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Business / Policy Watch

China suspends price adjustment for gasoline, diesel

(Xinhua) Updated: 2015-12-15 20:57

BEIJING - China's top economic planner said Tuesday that it will suspend the price adjustment of domestic refined oil products in a bid to combat air pollution.

"Giving full play to the leverage effect of refined oil prices is an important way to promote energy conservation and tackle air pollution," the National Development and Reform Commission (NDRC) said in a statement.

Under the mechanism, which became effective in March 2013, prices of refined oil products are adjusted when international crude oil prices translate into a change of more than 50 yuan per tonne for gasoline and diesel prices within a period of 10 working days.

International prices fell in the previous two weeks, and new cuts for gasoline and diesel prices were expected to be announced Tuesday.

The NDRC said China is facing stark challenges in environmental protection, as smog frequently covers major Chinese cities.

"Emissions from automobiles are one of the major reasons for air pollution," the statement said.

When international oil prices are low, domestic prices for refined oil products will remain steady so that less fuel will be consumed and that the environment and air quality will be improved, according to the NDRC.

The country will improve the pricing mechanism based on new situations and solicit public opinion about the new rules.

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