China on Tuesday launched a more market-oriented oil product pricing system to better reflect costs and adapt to fluctuations in global oil prices.
A system introduced in 2009 to adjust prices when Brent, Dubai and Cinta crude oil prices change by more than 4 percent over 22 working days, will be abandoned.The new system will shorten the adjustment period to 10 days and remove the 4 percent limit, allowing for swifter reaction to increases or cuts in fuel prices, according to the National Development and Reform Commission, China's top economic planner.
China has also cut gasoline and diesel prices for the first time this year. From Wednesday, the maximum retail prices of regular gasoline and diesel will be cut by 310 yuan ($48.30) and 300 yuan per ton. The benchmark retail price of gasoline will fall by 0.23 yuan per liter and diesel by 0.26 yuan per liter.
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