China has dialled back on planned fuel price hikes in a bid to 'reduce the burden' on drivers, as energy costs surge amid the Iran war.
The local price of petrol has jumped by about 20% since the start of the conflict, which has seen Iran effectively close one of the world's busiest oil shipping channels, the Strait of Hormuz.
Gasoline and diesel prices were initially set to rise by 2,205 yuan (£239; $320) and 2,120 yuan per tonne respectively – but after government adjustments, the increases will be nearly halved to 1,160 yuan and 1,115 yuan, starting Tuesday.
More than 300 million people in China drive cars that run on petrol or diesel, with Gulf countries being a major source of the country's oil.
Long queues of cars had formed outside petrol stations in multiple Chinese cities over the weekend, with some stations having to post notices that they had run out of fuel. This latest price hike is the country's fifth and largest of the year so far, even with the reduction.
On Tuesday, the price of Brent crude oil jumped above $100 a barrel - a day after prices plunged, as conflicting accounts of potential talks between the US and Iran emerged.
Authorities in China reportedly ordered its oil refineries to temporarily cease fuel exports in an attempt to keep domestic prices under control.
Other Asian countries, including Japan and South Korea, have also begun to impose measures in response to rising fuel costs, with varying approaches to mitigate the economic impact of the ongoing energy crisis.
