China cuts fuel prices by largest margin in nearly 6 years

China implemented its largest fuel price reduction in nearly six years on Saturday, as declining international crude oil prices following easing Middle East tensions bring relief to consumers across East Asia. Taiwan and South Korea have also seen fuel costs fall in recent weeks.

China's Sharpest Cut This Year

China's National Development and Reform Commission announced that retail gasoline and diesel ceiling prices would fall by 950 yuan ($140) and 915 yuan per metric ton respectively, effective July 4. The move marks the third consecutive reduction in retail fuel costs and the biggest single cut in nearly six years. According to Xinhua, the adjustment followed a period of fluctuating international oil prices from June 18 to July 3. Consumers filling a 50-liter tank with No. 92 gasoline will save approximately 37.5 yuan.phemex+2

The cuts come after Beijing raised diesel prices by 1,530 yuan per ton and gasoline by 1,590 yuan per ton during a conflict in the Middle East that had strained global energy supplies. A previous round of cuts on June 5 had reduced gasoline and diesel caps by 525 yuan and 505 yuan per ton respectively.reuters+1

Taiwan and South Korea Follow

State-run CPC Corp. announced Saturday that it would cut domestic gasoline and diesel prices by NT$0.6 and NT$0.7 per liter respectively, with new rates taking effect Monday. Taiwan had already begun cutting prices in late June after the United States and Iran signed a preliminary memorandum of understanding to end the war in the Middle East. Taiwan's Civil Aviation Administration also announced lower passenger fuel surcharges effective July 7, reflecting cheaper aviation fuel.dailymotion+3

In South Korea, gasoline and diesel prices fell for a seventh consecutive week. According to the Korea National Oil Corporation's Opinet system, the national average gasoline price in the first week of July dropped 55.7 won to 1,952.1 won per liter, while diesel fell 58.9 won to 1,942.4 won. The Chosun Ilbo reported that the decline has accelerated since the government implemented its seventh petroleum price ceiling cut on June 27, lowering caps by 150 won per liter for each fuel type. Dubai crude, the benchmark for South Korea's imported oil, stood at $63.3 per barrel as of July 2.sedaily+2

Broader Context

The coordinated easing across the region reflects a broader retreat in global energy prices since the U.S.-Iran diplomatic breakthrough in recent months. South Korea's consumer prices had risen more than 3 percent year-over-year in June, driven largely by fuel costs that jumped nearly 25 percent compared with a year earlier. With prices now falling, governments across East Asia are gradually unwinding emergency stabilization measures enacted during the height of the conflict.bignewsnetwork