BUSINESS

China Halves Fuel Price Hike for Second Time to Cushion Oil Shock

Published: Apr. 8, 2026 3:25 p.m. GMT+8

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Cars lining up for petrol in Shaoxing, Zhejiang on April 7, 2026. Photo: VCG

China moved for a second time to cushion consumers from the global oil shock triggered by the U.S.-Iran war, halving the size of a scheduled domestic fuel-price increase even as crude markets remained volatile.

The National Development and Reform Commission said on Tuesday that gasoline and diesel prices would rise from midnight by 420 yuan and 400 yuan a metric ton, respectively, well below the increases of 800 yuan and 770 yuan that would have been triggered under China’s normal pricing formula.

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China halved fuel price hikes to +420 yuan/ton gasoline (vs 800) and +400 yuan/ton diesel (vs 770), second intervention since U.S.-Iran war on Feb 28.
Retail prices: 92-octane gasoline 8.8-9 yuan/liter (+3.85%), diesel 8.5-8.7 yuan/liter (+4.2%), nearing 2022 peaks.
Strait of Hormuz nearly closed; WTI $114 (+67%), Brent $110.3 (+50.3%); IEA warns worse crisis than 1973/1979/2022.

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