China will raise the retail prices of gasoline and diesel from Friday, the fifth increase this year, the country's top economic planner announced Thursday.
As international oil prices have risen, the retail prices of gasoline and diesel will rise by 255 yuan (about 40.3 U.S. dollars) and 245 yuan per tonne, respectively, according to the National Development and Reform Commission (NDRC).
Under the current pricing mechanism, if international crude oil prices change by more than 50 yuan per tonne and remain at that level for 10 working days, the prices of refined oil products such as gasoline and diesel in China are adjusted accordingly.
A report by the NDRC pointed out that geopolitical risks would be a major factor affecting oil prices in the short term, especially prospects of renewed U.S. sanctions on Iran.
In the long run, more focus should be put on increasing U.S. shale gas output and OPEC production cuts, according to the NDRC.
The economic planner said it would closely monitor the effects of the current pricing mechanism and make changes in response to global fluctuations.
It has asked major Chinese oil companies, including China National Petroleum, China Petrochemical, and China National Offshore Oil, to ensure stable supply and pricing.