China To Cut Fuel Prices June 9: C1 Energy

China will cut gasoline and diesel prices June 9, energy consultancy C1 Energy said, citing sources from the country’s two largest oil companies, PetroChina Co. PTR +0.89% and China Petroleum and Chemical Corp. SNP -0.20% .

C1 Energy estimates that China’s National Development and Reform Commission, the country’s top economic planner, will lower fuel prices by 620 yuan ($97.74) a ton. This would represent cuts of at least 6% from current benchmark gasoline and diesel prices.

However, C1 said the cuts could be less than 600 yuan ($94.59) a ton.

As of June 7, the value of China’s crude basket had declined 9.34% since May 8, C1 Energy said.

The NDRC last adjusted gasoline and diesel prices May 10, cutting them by 330 yuan ($52.02) and 310 yuan ($48.87)a ton, respectively, in response to falling international oil prices.

Under China’s oil product pricing system, domestic fuel prices may be adjusted when the moving average of a basket of international crudes changes more than 4% over a period of 22 business days.

The government hasn’t always rigidly followed the formula, which was introduced in 2009.

This news has been reported by Market Watch.