China lowers gasoline, diesel prices

BEIJING - China's top economic planner lowered gasoline and diesel prices for the first time this year, according to a statement released Friday.

The National Development and Reform Commission (NDRC) said the price of gasoline will be lowered by 125 yuan (20.5 US dollars) per tonne, while the diesel price will drop by 120 yuan per tonne starting on Saturday.

The adjustment means the benchmark retail price of gasoline will drop by 0.09 yuan per liter and that of diesel down by 0.1 yuan per liter.

Under a new pricing regime that became effective in March, domestic oil costs will be adjusted when international crude oil prices reflect a change of more than 50 yuan for per tonne of gasoline and diesel over 10 working days.

The cut took into account international oil price changes in the previous 20 working days since the NDRC raised gasoline and diesel prices on December 12.

Since late December, international oil prices have fallen partly due to output increases in the Middle East and dropping demand in North America which has been affected by extremely cold weather, the statement said.

Libya has increased crude oil output in recent days, having a downward pressure on oil prices.