China Raises Gasoline and Diesel Prices as Oil Costs Surge

China’s National Development and Reform Commission (NDRC) will raise maximum retail prices for standard-grade gasoline and diesel by 685 yuan and 655 yuan per tonne, respectively, effective from 24:00 on July 31, citing higher international crude prices. The state price regulator announced the increase at the close of its latest 10-working-day pricing cycle, saying the average level of a basket of international crude prices had risen compared with the previous period.

For ordinary motorists, the adjustment translates into roughly 0.54–0.55 yuan more per liter for 92# gasoline and 0.56 yuan per liter for 0# diesel. A CCTV Finance calculation found that filling a standard 50-liter tank of 92# gasoline now costs about 27 yuan more.

Under China’s refined oil pricing mechanism, retail caps on gasoline and diesel are adjusted every 10 working days in line with changes in international crude prices, rather than on any single day’s trading. The latest increase follows a turbulent year for Chinese fuel prices, including temporary government price-control measures introduced in March after international crude surged amid the U.S.–Iran conflict.

The July 31 decision came as oil markets remained unsettled by geopolitical risk. Liu Bingjuan, chief energy analyst at Longzhong Information, told Xinhua that the Middle East situation had seesawed throughout the pricing cycle, keeping international crude prices sharply volatile. Brent futures briefly exceeded $100 a barrel early in the period, fell to about $84 a barrel during a July 24–28 lull in U.S.–Iran strikes, then climbed to roughly $89 a barrel after hostilities resumed on July 29.

Supply disruption was a central driver. According to CCTV Finance, Iran’s blockade of the Strait of Hormuz and a U.S. naval blockade of Iran have choked the main export route for Gulf crude. Yemen’s Houthi movement, meanwhile, announced a maritime embargo on Saudi Arabia from July 20, sharply reducing traffic through the Bab el-Mandeb strait. Russia–Ukraine strikes on energy transport in the Black Sea, Azov and Caspian region added further pressure, as did falling U.S. oil inventories and peak summer demand.

The NDRC directed CNPC, Sinopec, CNOOC and other refiners to organize production and transportation to ensure stable supply and to strictly implement national pricing policy. It also instructed local authorities to intensify market supervision and said consumers can report price violations through the 12315 platform.

The state-run People’s Daily Online reported that the increase equates to 0.55 yuan per liter for 92# gasoline and 0.56 yuan per liter for 0# diesel, figures consistent with the NDRC’s standard-product calculations. In U.S. dollar terms, the 685 yuan per tonne gasoline increase is equivalent to about $100.89, according to Xinhua’s English service.

The economic impact extends beyond the pump. Higher diesel and gasoline prices raise transportation and logistics costs across the economy, with potential knock-on effects on consumer inflation. Households feel the change directly: the extra 27 yuan per tank is a meaningful cost for drivers and small businesses that rely on road freight.

The NDRC’s Price Monitoring Center said the geopolitical situation remains highly uncertain and markets should closely monitor the impact of U.S.–Iran developments on international oil prices. That caution reflects how closely Chinese pump prices are now tied to Middle East security dynamics.

What happens next depends largely on crude markets. China’s next pricing window falls roughly in mid-August, after another 10 working days of trading. If geopolitical tensions keep oil elevated, further increases are possible; a sustained de-escalation around the Strait of Hormuz or Bab el-Mandeb could bring relief at the pump. For now, the direction of international crude — and the stability of key shipping lanes — will determine whether Chinese motorists see another price adjustment.