China will cut retail prices for petrol and diesel effective Saturday by 520 yuan (RM292.39) and 500 yuan per tonne respectively amid tumbling global oil prices.

With the adjustment, the 10th this year since July, petrol and diesel retail prices would drop by 0.39 yuan (22 sen) and 0.43 yuan (24 sen) per litre respectively, the National Development and Reform Commission (NDRC) said in a statement today.

Earlier in November, despite global fuel prices falling to their lowest level, the Ministry of Finance (MOF) and State Administration of Taxation announced a rise in consumption tax on oil products, including petrol and diesel, to help cut emissions and boost the green economy.

Following the adjustment, the consumption tax on petrol rose to 1.12 yuan (63 sen) from 1.0 yuan (56 sen) per litre while for diesel it increased from 0.8 yuan (45 sen) to 0.94 yuan (53 sen) per litre.

Under China’s current fuel pricing mechanism, the NDRC can adjust petrol and diesel prices when the international oil price per barrel changes by more than four percent over a period of 10 working days.

China shortened the adjustment period for fuel prices to 10 working days from 22 days in March last year.

- Bernama