China Limits Fuel Price Hikes as Oil Costs Surge

China has limited the amount by which the country’s fuel costs can rise, the government announced on Monday to mitigate surging oil prices due to the Middle East war.

Global oil prices have soared as the war between the United States, Israel and Iran has centered around the Strait of Hormuz, through which around 20 per cent of the world’s oil and gas shipments normally transit.

“To mitigate the impact of abnormal increases in international oil prices, ease the burden on downstream users, and ensure stable economic operations and public welfare, temporary regulatory measures have been adopted,” China’s state planner said in a statement.

The National Development and Reform Commission (NDRC) said it will hike the maximum retail prices for gasoline and diesel by 1,160 yuan ($217) and 1,115 yuan per metric tonne respectively, starting from midnight. (AFP)