China has moved to cap increases in domestic fuel prices after a sharp rise in global crude oil costs triggered by ongoing conflict in the Middle East.
International oil prices have climbed significantly amid the war involving the United States, Israel, and Iran, with tensions affecting shipping routes through the Strait of Hormuz. The waterway is a critical global energy corridor, responsible for the movement of about 20 percent of the world’s oil and gas supplies.
In response to the surge, China’s state planner announced on Monday that it has introduced temporary regulatory measures aimed at cushioning the impact of rising international prices on its economy and consumers.
The National Development and Reform Commission (NDRC) said the policy is intended to stabilise economic activity, reduce pressure on downstream users, and protect public welfare as global energy markets remain volatile.
Under the new adjustment, the commission approved increases in the maximum retail prices of gasoline and diesel. Gasoline prices will rise by 1,160 yuan per metric tonne, while diesel will increase by 1,115 yuan per metric tonne, with the changes taking effect from midnight.
Authorities said the intervention is part of efforts to prevent sharp domestic price shocks linked to external market instability, as energy-importing economies across Asia continue to feel the strain of elevated oil costs.
The spike in crude prices has already been felt across several regions, including Asia, where many countries rely heavily on imported fossil fuels. Analysts say prolonged instability in the Middle East could continue to affect global supply chains and energy affordability in the coming weeks.
