China cuts fuel prices for third consecutive time as global oil prices ease

China will reduce retail ceiling prices for gasoline and diesel from July 4, marking the third consecutive fuel price cut and the largest reduction in nearly six years, the country's top economic planner announced.

The National Development and Reform Commission (NDRC) said gasoline prices will be lowered by 950 yuan (approximately $139) per tonne, while diesel prices will be reduced by 915 yuan ($134) per tonne, Chinese media reports.

The latest adjustment follows a decline in international crude oil prices, driven by easing geopolitical tensions in the Middle East and the gradual recovery of shipping through the Strait of Hormuz, according to Tian Lei, head of the Economy Centre at the Energy Research Institute of the Chinese Academy of Macroeconomic Research.

Under China's fuel pricing mechanism, domestic gasoline and diesel prices are reviewed every 10 working days and adjusted in line with movements in international crude oil prices.

Tian said the latest price reduction is expected to save private vehicle owners about 40 yuan ($5.8) each time they fill up their fuel tanks, while truck drivers could save around 400 yuan (58.9) per tank.

The NDRC called on major oil producers and refiners to ensure stable fuel supplies and strictly comply with the country's pricing policies.

The announcement comes as China's overall energy demand continues to grow. Official data showed the country's total energy consumption reached 6.17 billion tonnes of standard coal equivalent in 2025, an increase of 3.5% from a year earlier. Crude oil consumption rose 3.6% year-on-year, while the share of clean energy in China's energy mix continued to expand.

By Sabina Mammadli