Domestic refined oil prices cut from the 16th

Earlier today, the National Development and Reform Commission announced that from midnight on November 16, the price of gasoline will decrease by 310 yuan per ton, while diesel will see a reduction of 300 yuan per ton. On average, consumers across the country can expect a drop of about 0.23 yuan per liter for 90-octane gasoline and 0.26 yuan per liter for 0-grade diesel. This marks the eighth overall price adjustment and the fourth price cut for domestic refined oil products this year. Following this change, the retail price of gasoline in most parts of China has reverted to what is being referred to as the "seven-yuan era." Interestingly, this year's price adjustments have been particularly prompt. For the last four price adjustments, the NDRC has always initiated the adjustment process on the same day, without any noticeable delays. Since the introduction of the refined oil pricing mechanism in 2009, this consistency in timing has been impressive. However, this latest round of price cuts was slightly delayed by a day, which came as a surprise to many within the industry. According to data, the average change rate of crude oil prices in Dubai, Brent, and Tintas fell by -4.12%. Given this, the domestic refined oil price adjustment window officially opened on the same day, and it was expected that adjustments would be made on time. Industry analysts had already calculated that the crude oil price change rate had fallen below the -4% threshold required for an adjustment as early as November 13th. In response, the NDRC stated that the decision to adjust domestic refined oil prices was primarily based on the existing pricing mechanism, taking into account recent fluctuations in international oil prices. By November 14th, the average price of these three types of crude oil had dropped by more than 4% over 22 consecutive working days, triggering the necessary conditions for a price adjustment. Consequently, the government decided to act swiftly to reduce domestic refined oil prices. Overall, this year has seen some of the most timely oil price adjustments since the implementation of the refined oil pricing mechanism in 2009. One major factor contributing to this punctuality is the fact that the domestic Consumer Price Index (CPI) remains largely under control, minimizing the impact of rising oil prices on inflation. This reflects the growing market-oriented direction of the refined oil pricing mechanism, paving the way for future reforms. Looking ahead, it seems that the refined oil pricing mechanism is gradually moving toward greater transparency and responsiveness. While challenges remain, this year’s adjustments signal a positive step forward in balancing economic considerations with consumer needs.