China increases fuel wholesale prices amid global energy volatility

China has raised wholesale fuel prices, increasing gasoline by 345 yuan per ton and diesel by 335 yuan per ton, effective October 30. The National Development and Reform Commission announced these adjustments in response to rising global oil prices driven by geopolitical tensions in the Middle East.

To mitigate the economic impact on consumers and the manufacturing sector, the Chinese government has partially absorbed the price surge. Under standard pricing formulas, the increases would have been higher, at 440 yuan for gasoline and 420 yuan for diesel. This intervention aims to limit the shock of energy cost spikes on the domestic economy.

Global energy markets remain volatile due to supply disruptions and uncertainties regarding energy transit routes, particularly in the Strait of Hormuz. While Brent and WTI crude prices have recently seen fluctuations, the rising costs in China reflect broader instability in the international energy landscape.