Pricing mechanism
Under the approved pricing mechanism, the increases were supposed to be around $320 per metric ton for gasoline and $307 per metric ton for diesel, but the National Development and Reform Commission indicated that retail prices for gasoline would be $168 per metric ton and $161 per metric ton for diesel.
The government aims to ease the burden on consumers and reduce inflationary pressures, while maintaining economic stability.
Supply disruptions
Oil prices fell by nearly 6% today, amid expectations of a possible ceasefire that would ease supply disruptions from the key Middle East production region, following reports that the United States had sent Iran a 15-point plan to end the war between them.
Brent crude futures fell $6.21, or 5.9%, to $98.28 a barrel, while U.S. West Texas Intermediate crude futures dropped $4.67, or 5.1%, to $87.68 a barrel.
Both crude oil benchmarks rose by about 5% yesterday, before their gains were pared back in volatile trading after the close.
