China is expected to raise oil prices this month as an increase in a basket of crude oil prices hit a trigger point.
The world’s second-largest oil consumer is expected to increase diesel and gasoline prices after three consecutive price cuts. C1 Energy data showed that on July 30th the 22-day average price of Dubai, Brent and Cinta was 4.47% above the level when China reduced oil prices the last time.
But since the country made the last cut on July 11th, the government may just consider such a move at the beginning of August, under the current one-month review period. C1 Energy is one of the many groups that try to reflect the National Development and Reform Commission’s calculations, the one that sets fuel prices in China.
The NDRC announced it will increase fuel prices if the 22-day moving average international price increases or decreases 4%. The Commission will also take into consideration factors such as fuel supply, inflation and demand. Since it adopted a new pricing formula in 2009, the NDRC has not revealed its daily calculations, the crude grades it uses or their weightings.