On October 23, 2023, in Beijing, China’s domestic oil prices experienced a slight increase, marking the ninth increase of the year. According to a recent announcement from the National Development and Reform Commission (NDRC), starting from midnight on October 23, 2024, the price of gasoline and diesel will rise by 90 yuan and 85 yuan per ton, respectively, in response to changes in international oil prices.
Meng Peng, an analyst from Zhuochuang Information, pointed out that this price adjustment will lead to a modest increase in driving costs. For example, filling up a household sedan with a 50-liter fuel tank using 92 or 95 octane gasoline will cost an additional approximately 3.5 yuan.
For consumers who drive a small private car that travels 2,000 kilometers a month with a fuel consumption of 8 liters per 100 kilometers, their fuel costs are expected to rise by around 5 yuan before the next price adjustment window opens on November 6, 2024.
In the logistics sector, for a heavy truck that covers 10,000 kilometers per month with a fuel consumption of 38 liters per 100 kilometers, the fuel costs will increase by approximately 124 yuan per vehicle before the next price adjustment.
Since the beginning of 2024, there have been a total of 21 price adjustment windows for refined oil retail prices in China, which include 9 increases, 8 decreases, and 4 instances where prices remained unchanged. The prices for standard gasoline and diesel have each increased by a total of 15 yuan per ton, translating to a rise of about 0.01 yuan per liter for 92 octane gasoline, 95 octane gasoline, and 0 diesel compared to the beginning of the year.
Looking ahead, analyst Dai Tiandong from Zhuochuang Information mentioned that factors such as the U.S. oil inventory build-up and expectations for increased production from OPEC+ may exert downward pressure on the market. He anticipates that international oil prices may continue to show weakness, with the next pricing cycle potentially starting on a low note.
