Asia Viewpoint: by Ma Dongwei

The National Development and Reform Commission of China announced on Dec 3 that the regulated domestic price for gasoline and gasoil would be raised from 24:00 on the same day by Yuan 250/mt ($38.16) and Yuan 240/mt ($36.64) respectively. This is the sixth price hike in 2020 and the increase is the largest this year. The Chinese government reviews the regulated price every 10 business days by considering movements in domestic and international prices.

In Beijing, the price of No.92 gasoline was raised from Yuan 5.55/liter to Yuan 5.75/liter, an increase of Yuan 0.20/liter. The price of No.0 gasoil rose Yuan 0.21/liter from Yuan 5.18/liter to Yuan 5.39/liter. Looking at the gasoline tank capacity of 50 liters for a normal passenger car, the cost of a full tank of gasoline would increase by around Yuan 10.

Including the current adjustment, the regulated price of gasoline and gasoil was raised 6 times, lowered 5 times and kept unchanged for 12 times in 2020. Overall, the price of gasoline and gasoil had dropped Yuan 1,540/mt and Yuan 1,485/mt respectively.