China Raises Oil Prices on April 7; Government Absorbs 48% of the Hike

According to official announcements, the Chinese government will absorb 47.5% of the gasoline price increase and 48.1% for diesel starting tonight. The National Development and Reform Commission (NDRC) stated that international crude oil prices have fluctuated significantly since the last adjustment on March 23. To mitigate the impact on the domestic market, the NDRC has implemented price control measures. The NDRC directed the 'Three Barrels of Oil'—PetroChina, Sinopec, and CNOOC—along with other refiners to organize production and transport to ensure stable supply and strictly follow state pricing policies. Market supervision will be intensified to penalize any non-compliance. In the previous adjustment on March 23, prices were raised by 1160 RMB for gasoline and 1115 RMB for diesel, whereas the market-based hike should have been 2205 RMB and 2120 RMB respectively. This represents the first major intervention since the 2013 pricing mechanism was implemented.