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China to cut gasoline, diesel prices

Updated: 2011-10-08 17:36

(Xinhua)

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BEIJING - China will reduce retail prices for gasoline and diesel by 300 yuan (about $47) per tonne starting October 9, the country's top economic planner said on Saturday.

The benchmark retail price of gasoline will be cut by 0.22 yuan per liter and diesel by 0.26 yuan per liter, according to the National Development and Reform Commission (NDRC).

The decrease marks the first fuel price reduction since June 1, 2010. Over the past 16 months, the NDRC has raised fuel prices four times following escalating global crude prices.

However, a gloomy outlook for the global economic recovery has dampened crude prices.

China's current oil pricing system was introduced in May 2009. The system gives the NDRC the right to adjust domestic fuel, diesel and gas prices when average prices for Brent, Cinta, and Dubai crude oil move by 4 percent within 22 consecutive working days.

($1=6.37 yuan)?

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