CHINA China's domestic oil may face a ninth round of price hike: analysis firms

CHINA

China's domestic oil may face a ninth round of price hike: analysis firms

Global Times

21:17, June 28, 2021

A gas station employee refuels a vehicle in Shijiazhuang, North China's Hebei Province on Wednesday. Domestic retail oil price of gasoline and diesel will see price hikes from Thursday. Some agencies predict that car owners will spend about 9 yuan ($1.38) more to add a tank of fuel to a 50-liter private car. (Photo: cnsphoto)

China to increase oil price for ninth time amid the open of domestic refined oil price adjustment window on Monday at 12 am, said the National Development and Reform Commission (NDRC) on Monday, which is the ninth increase since this year due to the upwards international oil price, according to media report.

From Monday 12 am, domestic gasoline and diesel prices will be increased by 225 yuan ($34.85) per ton and 215 yuan per ton, respectively, according to NDRC.

Energy market insider Oilchem.net estimated that the domestic gasoline and diesel may increase by about 230 yuan per ton, equivalent to 0.17 yuan to 0.20 yuan per liter, meaning that filling up a 50L tank of 92# gasoline will cost about 8.5 yuan to 10 yuan extra.

Financial information provider Economic View noted that the domestic oil price had been adjusted over 11 rounds. Gasoline and diesel prices have been increased by 1,180 yuan per ton and 1,140 yuan per ton since 2021, respectively.

International oil prices have continued to move upward since June. According to Economic View, WTI crude oil futures for August delivery closed at $74.05 per barrel and Brent crude oil futures for September delivery in London closed at $75.38 per barrel, as of the early morning close on June 26 BST, both the highest closing prices since October 2018. It was also the fifth consecutive week of gains in international crude oil prices.

Oilchem.net believed that the global economy recovery and demand continue to be positive, it is expected that the next round of refined oil price adjustment in Chinese oil market is more likely to increase.

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