An attendant filling gasoline onto a car at a Sinopec gas station in Huaibei, Anhui province. For Sinopec, falling oil prices mean lower production costs for its downstream refining and petrochemical business. (Photo/China Daily)
China is to cut fuel prices from Wednesday, the sixth consecutive reduction since June.
The National Development and Reform Commission said retail gasoline prices will go down by 125 yuan ($19.7) per ton and diesel by 120 yuan per ton. The unit price of number 90 gasoline will fall by 9 cents and number 0 diesel will be 1 cent cheaper.
The price cut is within the expectation of analysts despite global crude oil prices making a small rebound in the past couple of days.
Under an oil pricing policy in place since the start of 2013, the NDRC can adjust the price every 10 working days based on changes in the global market, should the change be more than 50 yuan per tonne.
Global oil prices have fallen below $50 per barrel, the lowest in more than six years, due to a glut but WTI (West Texas Intermediate) crude prices have risen by 27.5 percent and Brent crude is up 25.5 percent in the past three trading days.
