Soaring Oil Prices Halved by Government... China's First Intervention in a Decade with "Extraordinary Measures"

Scheduled Price Hike Curbed to Nearly Half

As international crude oil prices surged in the aftermath of the Iran war, the Chinese government has intervened to control domestic oil prices for the first time in over a decade.

A queue for refueling stretching all the way to the road. Photo unrelated to the article. Photo by Yonhap News Agency

The National Development and Reform Commission (NDRC), China's top economic planning agency, announced on the 23rd (local time) that it would introduce "temporary regulatory measures" on gasoline and diesel prices.

As of midnight on the 24th, the retail prices for gasoline and diesel rose to 1,160 yuan (approximately 250,000 won) and 1,115 yuan per ton, respectively. Originally, prices were expected to be around 2,205 yuan for gasoline and 2,120 yuan for diesel, but the rates have been set at about half that level.

The NDRC stated, "In order to mitigate the shock caused by the abnormal surge in international oil prices, alleviate the burden on end users, and ensure the stable operation of the economy and livelihoods, we are adopting temporary adjustment measures for domestic refinery prices while maintaining the current price mechanism framework." The agency added, "We will ensure that refining and sales companies do their utmost to produce and transport refined oil to guarantee market supply. Relevant authorities will also strengthen the intensity of market supervision and inspections to strictly crack down on illegal acts such as failing to implement national price policies, thereby safeguarding market order and consumer interests."

According to local media such as China's Xinhua News Agency, this is the first time the government has directly intervened to adjust the scale of price increases since the introduction of the current pricing system in 2013. The 2013 guidelines stipulate that if international oil prices surge in a short period or in the event of an emergency, price adjustments may be suspended, delayed, or reduced in scale with approval from the State Council.

Local media reported that, as a result of this measure, ordinary car drivers are expected to save 40 to 50 yuan per refueling, while large truck drivers could save 300 to 500 yuan.

Lin Boqiang, Director of the Energy Economics Research Institute at Xiamen University, commented, "This measure is a timely and forceful response to abnormal fluctuations in the international market." Bert Hofman, former China Country Director at the World Bank, assessed, "China will inevitably be affected by high oil prices due to the war, but compared to Japan or India, its import sources are more diversified, which places it in a relatively stable position."

This content was produced with the assistance of AI translation services.