NDRC announces cut in prices of gasoline, diesel

The National Development and Reform Commission (NDRC) announced late Thursday that starting Friday the domestic gasoline price would be cut by 310 yuan ($49.72) per ton, and the price of diesel by 300 yuan per ton, marking the fourth cut since the beginning of this year.

After the adjustment, the price of gasoline will be cut by 0.23 yuan per liter and 0.26 yuan per liter for diesel. The price of 93-octane gasoline in most places will fall back under 8 yuan per liter after the cut.

"I have been expecting this for a few days, since media reports said recently that fuel prices might be cut," said Han Fengye, a 26-year-old white-collar worker who drives to work every day. Han said the price cut could save her around 30 yuan each month.

Since the beginning of this year, domestic oil prices have been adjusted eight times - much more than usual - as a result of fluctuations in the international market. From May to September, oil product prices have been adjusted on a monthly basis.

"But commodity prices are expected to keep stable for the rest of the year. If the pricing mechanism is not adjusted, this may be the last price adjustment this year," Wang Jintao, chief analyst at commodity information provider Zibo Zhongyu Information Technology Co, told the Global Times Thursday.

Under the current pricing mechanism for oil products, the NDRC adjusts domestic gasoline and diesel prices when international crude prices change by 4 percent over 22 consecutive working days.

There have been complaints that domestic oil product prices lag behind international changes under the current scheme.

Market watchers said it would be good timing for the NDRC to reform the mechanism when international oil prices and domestic inflation are at a low level. Media reports said that the time span may be adjusted to 10 working days under the new mechanism.