The National Development and Reform Commission (NDRC) announced a hike in fuel prices in China, starting at 12:00 am on Wednesday, May 31 in various Chinese regions and cities, as it is scheduled to increase the prices of gasoline and diesel in the domestic market by about 100 and 95 yuan. ($ 14.13 and $ 13.42) per ton, respectively, according to a statement published by the committee on its website today, Tuesday, May 30, and viewed by the specialized energy platform.
(Chinese Yuan = 0.14 USD)
The committee said that the increase in the prices of refined oil derivatives came based on the recent changes in oil prices in the international market, and according to the current refined crude price mechanism.
Fuel prices in China are subject to a mechanism that is adjusted every 15 days, based on changes in the price of a barrel of oil globally. (gasoline and diesel) accordingly.
Gasoline prices in China
The National Development and Reform Commission revealed that the maximum retail prices for gasoline will be 9,375 yuan and 8,350 yuan for diesel in Beijing.
While the retail price of gasoline in Shanghai is about 9,355 yuan, and 8,320 yuan for diesel.
She stressed to oil refining companies, such as PetroChina, Sinopec and Sinopec, the need to regulate the production and transportation of refined oil to ensure stable supplies in the domestic market, as well as strictly implement the national price policy.
The relevant departments of various regions and cities must also supervise and monitor the market, and investigate and punish those who do not implement the national price policy. In addition, consumers can report any price violations.
This came after the committee decided to reduce the prices of gasoline and diesel in the domestic market on May 17 (2023), by 380 yuan and 365 yuan per ton, respectively.
Crude oil prices
On the other hand, crude oil prices rose by more than 1% during the past week.
During the week ending on Friday, May 26 (2023), Brent and West Texas Intermediate crude recorded weekly gains of about 1.8% and 1.4%, respectively.
However, crude oil prices extended their losses today, Tuesday, May 30 (2023), by about 2%, and Brent crude futures – delivery July 2023 – fell to $ 75.89 a barrel, by 11:19 am GMT (02:19). evening Mecca time).
China’s oil imports
The rise in fuel prices in China, the world’s largest oil importer, comes with the recovery in Asia’s imports of crude oil during the month of May (2023).
About 27.73 million barrels per day of crude oil is expected to be unloaded at ports in the most consuming regions this month, according to Refinitiv Oil Research data, which was seen by the specialized energy platform.
This represents an increase of 8.6%, compared to 26.39 million barrels per day in April.
The strong rebound was thanks to China, which is expected to receive 11.98 million bpd in May, up from 10.96 million bpd in April, and just below the 34-month high of 12.37 million bpd in March. March.
This is due to the completion of maintenance work at Chinese refineries, and the ramping up of production to boost stocks ahead of the peak demand season in China.
It is noteworthy that Chinese refineries resorted to stockpiles for the first time in 18 months to compensate for the shortage of oil imports, according to what was published by Reuters on Friday, May 19 (2023).
According to the data – seen by the specialized energy platform – Chinese refineries processed about 61.1 million tons (14.87 million barrels per day) during the month of April (2023).
It resorted to stockpiles after processing rates exceeded refinery quotas of crude.
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