No fuel price adjustment expected

Domestic fuel prices are unlikely to be adjusted again in October as international crude oil prices have been stable recently, analysts said Thursday.

According to data from trade information portal sci99.com, the average price of Brent, Dubai and Cinta - the three international crude oils on which China bases its fuel prices - reached $112.09 a barrel by Wednesday. The average price for the previous 22 consecutive days was $110.45 a barrel.

Under the current price setting mechanism, the National Development and Reform Commission adjusts domestic fuel prices if the average price of Brent, Dubai and Cinta changes by 4 percent over 22 consecutive working days.

Liao Kaishun, an analyst with industry watchers C1 Energy, said that oil prices are expected to rise, but will not change by 4 percent in October.

"The Syria crisis and the standoff between Iran and the US could play a role in the rise of oil prices in the short term," said Liao, "However, quantitative easing in the US or inflation could be bigger reasons behind the rise."

A third round of quantitative easing, or QE3, was launched by the US Federal Reserve on September 13.

Aiming to boost the stagnant US economy, the Fed started a $40 billion a month bond purchasing program and continued the policy to keep interest rates at a low level until mid-2015.

"Data from QE1 and QE2 showed that a month and a half after the quantitative easing began, crude oil prices would usually see a rise," Liao said.

"The oil price will not see much adjustment until the middle of November," Wang Jintao, chief analyst at commodity information provider Zibo Zhongyu Information Technology Co, told the Global Times Thursday.

Wang noted that with presidential elections in the US and the 18th CPC National Congress coming this November, the oil price will remain relatively stable for political reasons. "The OPEC meeting in December will also play a key role in future international oil prices," Wang noted.

The domestic 93 octane gasoline price dropped to 9,630 yuan per ton by Tuesday, marking a 144 yuan per ton fall from the price on September 19.