The largest reduction in 6 years.. China reduces gasoline and diesel prices economy

In a move that reflects the effects of the decline in global energy markets, China announced the reduction of retail prices for gasoline and diesel fuel at the largest pace in about 6 years, in addition to reducing fuel surcharges on domestic flights, in the third successive price reduction during the recent period.

The National Development and Reform Commission of China said that gasoline prices will be reduced by 950 yuan (about $139) per ton, while diesel will be reduced by 915 yuan (about $135) per ton, as part of the approved pricing mechanism that links local prices to fluctuations in crude oil in international markets, and is updated every ten working days.

This decision comes in light of the decline in global oil prices and the decline of geopolitical tensions in some supply areas, which was indicated by Tian Li, head of the Economics Center at the Energy Research Institute of the Chinese Academy of Macroeconomic Research, saying that this adjustment “comes after the decline in crude oil prices in international markets from their recent high levels, in light of the decline of tensions in the Middle East region and the gradual recovery of navigation traffic through the Strait of Hormuz.”

Tian Li added that this reduction will be reflected directly on consumers, explaining that private car owners will save about 40 yuan (about 5.9 dollars) on each fuel fill, while truck drivers may save about 400 yuan (about 59 dollars) per tank.

Aviation sector

In the aviation sector, Chinese companies, including China Airlines, announced a reduction in fuel surcharges on domestic flights as of July 5, to 50 yuan (about $7) for flights not exceeding 800 kilometers, and 100 yuan (about $14.7) for longer flights, with infants exempted and a 50% reduction for children, disabled soldiers, and police officers.

Compared to previous levels, fees will decrease by 30 yuan (about $4.4) for short trips and 50 yuan (about $7) for long trips, in a move aimed at reducing domestic travel costs.

The National Development and Reform Commission called on the major refining companies to ensure the stability of supplies in the market, while continuing to follow developments in domestic energy demand, which is witnessing gradual growth with the expansion of the economy and the change in the structure of consumption, as energy consumption in the country recorded high levels during the year 2025 with the continued rise in demand for crude oil and the expansion of clean energy sources.