With the official numbers from China's top economic planning body on its plan to cut fuel price ceilings which takes effect tomorrow, the National Development and Reform Commission says gasoline prices will be cut by 420 yuan, or about 66 US dollars per ton, down about 4.6-percent. Diesel prices will be lowered by 400 yuan per ton, or down about 4.8 percent. It marks a third consecutive cut to oil prices in 2-months, and is in line with market expectations.
Officials from the NDRC says the price cut comes as crude prices in the global market has fallen over 4-percent during 22 working days. The NDRC also notes the lowered fuel price also takes into consideration the movement of the RMB, its exchange rate versus other currency pairs, and the profits of domestic oil companies.