China braces for further retail fuel price hike as Iran war intensifies

Motorists lined up at petrol stations in China’s capital city of Beijing to refuel their vehicles ahead of an expected retail fuel price cap hike on Monday (March 23), as escalating U.S.-Israeli war on Iran kept oil prices elevated and roiled global financial markets.

Gasoline price in Beijing currently stands at 9,510 yuan ($1,381) per metric ton, as China allows retail gasoline and diesel prices to float freely between floors and ceilings.

Monday’ price revision is expected to be the second hike in the retail fuel price from Chinese National Development and Reform Commission, with the first on March 9, since the Iran war began.

China's state planner reviews retail gasoline and diesel prices every 10 working days and applies uniform adjustments nationwide, though benchmark prices vary by region.

The adjustment rate reflects changes in international crude oil prices while also taking into account average processing costs, taxes, distribution expenses and appropriate profit margins.

-Production: Nicoco Chan, Joyce Zhou, Wang Shubing, Xihao Jiang/Reuters