BEIJING — China will lower the retail prices of gasoline and diesel from April 1, the country’s top economic planner said on March 29.
Due to value-added tax (VAT) rate adjustment starting from April 1, the retail prices of gasoline and diesel will be slashed by 225 yuan ($33.4) per ton and 200 yuan per ton respectively, the National Development and Reform Commission said in a statement.
The VAT rate for refined oil products will be dropped from 16 percent to 13 percent, according to the statement.
The statement came on the heels of an announcement made by the economic planner on March 28, which said the retail prices of gasoline and diesel would both be raised by 80 yuan per ton starting from March 29.
Under the current pricing mechanism, prices of refined oil products are adjusted when international crude oil price changes translate into a change of no less 50 yuan per ton for gasoline and diesel prices within a period of 10 working days.
International crude prices rose to a nearly 5-month high recently on tight supply.