China Increases Gasoline and Diesel Prices Following Global Oil Volatility

China's National Development and Reform Commission (NDRC) announced an upward adjustment in domestic refined fuel price caps effective midnight on July 31, 2026. Standard gasoline and diesel prices will increase by 685 yuan and 655 yuan per ton, respectively. The decision follows sharp fluctuations in international crude oil markets since the previous domestic price adjustment on July 17, which pushed the ten-working-day average higher. State-owned energy giants have been instructed to secure market supply, while local authorities will monitor price compliance.

The price increase directly raises transport and operational costs for logistics providers, commercial fleets, and private motorists across China. It highlights how global crude market volatility translates into domestic consumer prices through China's structured ten-day pricing mechanism.

China’s National Development and Reform Commission (NDRC) announced a substantial increase in domestic fuel price caps on July 31, 2026, driven by recent volatility in global crude markets. Effective from midnight (24:00) on July 31, standard gasoline and diesel prices will be raised by 685 yuan per ton and 655 yuan per ton, respectively, according to a notice published by the NDRC’s Price Department. The price hike comes in response to turbulent international oil market dynamics following the previous domestic adjustment on July 17. The NDRC noted that benchmark global crude prices underwent sharp fluctuations over the recent reporting window, experiencing steep gains followed by brief pullbacks before climbing higher again. Under China's established fuel pricing mechanism, retail prices are evaluated every ten working days based on changes in international crude averages. Because the ten-day average leading up to July 31 surpassed that of the previous window, an upward price adjustment was triggered. To prevent supply disruptions and ensure market stability following the price adjustment, the central economic planner directed major state-owned oil companies—China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec), and China National Offshore Oil Corporation (CNOOC)—as well as independent refiners to optimize crude processing and fuel distribution networks. The NDRC explicitly ordered all refined oil producers and distributors to comply strictly with national price regulations and maintain steady domestic market supply. Simultaneously, the agency instructed local market regulation departments across provinces and central cities to step up supervision and enforcement. Regional authorities are mandated to clamp down on unauthorized price surcharges and penalize entities that fail to comply with official price caps. To safeguard consumer rights, the government encouraged the public to report any illegal pricing behavior using the national 12315 hotline and online platform.