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China plans to cut gasoline, diesel prices today

Wednesday, 29 July 2009


SHANGHAI, July 28 (Bloomberg): China will cut gasoline and diesel prices by 220 yuan ($32) per metric ton from tomorrow to reflect a drop in global crude costs, state-run China Central Television said on its Web site today.
"Global crude prices under China's pricing mechanism seem to have fallen to $63.97 a barrel from $67.80 a barrel when the country last increased domestic fuel prices on June 30," China's state radio said separately today.
The Chinese government controls prices under a mechanism introduced in December that takes into account crude-oil costs, taxes and a profit for refiners. China may adjust fuel prices when crude-oil costs change more than 4 per cent over 22 straight working days, the commission said on May 8.
China raised prices of diesel and gasoline by as much as 11 per cent on June 30.