China Raises Retail Fuel Price Caps by Up to 75 Yuan per Ton

China will raise the maximum retail price of gasoline by 75 Chinese yuan ($11.03) per metric ton and diesel by 70 yuan ($10.29) per ton starting Friday, according to a notice by the state planner. The increases mark the latest adjustment to domestic fuel price caps since the Iran war began and follow several prior upward revisions.

In early March, China implemented its sharpest increase since March 2022.

India began raising domestic fuel prices last week. China has made multiple adjustments to gasoline and diesel ceilings since the conflict started. The recent price rises have already reduced consumption of road transportation fuels in China, according to OilPrice.com reporting. China's gasoline demand has dropped since the Iran war upended global oil markets and is on track to decline further.