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. The latest price hike was the country's fifth and largest of the year so far - even with the reduction.
On Tuesday, Brent crude oil prices surged above $100 a barrel, reflecting the volatility and uncertainty around potential US-Iran talks. Beijing has proactively built up oil reserves over the years, currently holding substantial reserves to safeguard the economy. Measures to temporarily stop fuel exports by Chinese refineries indicate a strategic approach to manage domestic demand and ensure price stability amid external pressures from rising global oil prices.
In contrast, other Asian nations are also feeling the impact of these increased costs, prompting various measures to mitigate strain on transportation and public services.
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. The latest price hike was the country's fifth and largest of the year so far - even with the reduction.
On Tuesday, Brent crude oil prices surged above $100 a barrel, reflecting the volatility and uncertainty around potential US-Iran talks. Beijing has proactively built up oil reserves over the years, currently holding substantial reserves to safeguard the economy. Measures to temporarily stop fuel exports by Chinese refineries indicate a strategic approach to manage domestic demand and ensure price stability amid external pressures from rising global oil prices.
In contrast, other Asian nations are also feeling the impact of these increased costs, prompting various measures to mitigate strain on transportation and public services.
