China will cut the retail prices of gasoline and diesel from Saturday, the first cut after five increases, the National Development and Reform Commission (NDRC) announced Friday.
The retail prices of gasoline and diesel will drop by 130 yuan (about 20.28 U.S. dollars) and 125 yuan per tonne, respectively, according to NDRC.
If international crude oil prices change by more than 50 yuan per tonne and remain at that level for 10 working days, the prices of refined oil products such as gasoline and diesel in China are adjusted accordingly.
Rising U.S. crude oil output and the expectations of OPEC output increases have brought down international crude oil prices.
The NDRC has asked major Chinese oil companies, including China National Petroleum, China Petrochemical, and China National Offshore Oil, to ensure stable supply and pricing.
The NDRC said it expects international crude prices to remain volatile before the OPEC meeting in late June, and that attention should be paid to OPEC policies and the situation in the Middle East.