The National Development and Reform Commission (NDRC) announced on Jan 26 that retail prices for gasoline and diesel would be reduced on Jan 27.

The price of gasoline and diesel will be cut by 365 yuan ($60) and 350 yuan per tonne respectively, according to a notice released by the NDRC.

The price tweak will come into effect on Jan 27 with the retail price of gasoline and diesel per liter dropping by 0.27 yuan and 0.3 yuan respectively.

Since mid-January, global oil prices have plummeted as international supply remains abundant amid sluggish demand.

The latest cuts were unveiled within the existing pricing mechanism and were decided in accordance with the international crude price change taking place over a period of 10 working days.

The NDRC has required PetroChina, Sinopec, CNOOC — China’s leading oil and gas companies — to ensure continuing supplies and strictly follow the country’s pricing policy.

All regulatory bodies have been instructed to tighten oversight of the market and ensure market order.