China reduces prices for gasoline and diesel fuel

China will cut gasoline and diesel prices by 220 yuan (US$32.22) a metric ton, despite a sharp run-up in global crude prices since mid-July. The cuts, announced by the National Development and Reform Commission (NDRC), amount to a reduction of around 3% from current average gasoline and diesel retail ceiling benchmarks of 7,530 yuan (US$1,102.96) and 6,790 yuan (US$994.57) per ton, according to Dow Jones Newswires calculations. This is the second fuel price cut this year. The NDRC announced the details of its new oil product pricing mechanism in December. This system allows domestic fuel prices to be adjusted when the moving average of a crude basket changes more than 4% over a period of 22 working days. (July 29, 2009)