Beijing (CNS) -- Starting October 9, prices of petrol and diesel will be lowered by 300 yuan every ton (0.22 yuan and 0.26 yuan per liter, respectively), announced the National Development and Reform Commission (NDRC) Saturday.
This is the first reduction in the past 16 months, since June 1, 2010.
The international oil price drop began in early August and went down sharply in late September. On October 4, the prices of WTI and Brent crude oil fell to 75.7 USD and 99.8 USD per barrel.
According to the authoritative regulation, though international oil prices have decreased by over 4%, "an official price adjustment decision must be made under the premise of an overall 4% price change for 22 continuous working days." It was not until recently that the criteria had been met.
Since the reform plan for the refined oil product prices and tax system was implemented at the end of 2008, ten rises and six reductions have been recorded, leading to certain public dissatisfaction.
The international oil price hiked by 200% in 2009. Governmental control has limited the price inflation at around 50%, against the reasonable market response of 70%, noted an official at the NDRC. Public misunderstanding was caused by confusion over the different price regimes at home and abroad.
The same official also mentioned an ongoing evaluation of the current refined oil product price mechanism. Improvements will be made to shorten the adjustment period, speed up the modification frequency, increase regime practicality, and adjust oil product classification.
