BEIJING, Dec. 27 (Xinhuanet) -- China's top economic planner has announced another cut on the retail price of gasoline and diesel. This is the 10th cut since July this year.
The National Development and Reform Commission said the adjustment takes effective on Saturday. Retail prices will drop by 0.39 yuan per liter for gas and 0.43 yuan per liter for diesel. China has a pricing regime which adjusts domestic fuel prices when international crude prices change by more than 50 yuan per tonne during a time span of 10 working days.
The last time China cut the fuel retail price on December 12, it also imposed higher taxes, the second increase in a month.
"The drop of the oil price will decrease the cost of its related industries, for example the chemical industry. The cost is reduced by approximately 40%, so we should speed up the industrial reform and upgrade, and push forward high-technology development. It's also a good time to boost the strategic oil reserve, we should buy oil in at the lower price and store it for the futures trade," said Chen Wenling, economist at China Center for Int'l Economic Exchanges.
(Source: CNTV.com)
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