China raises gasoline and diesel price caps amid Middle East tensions

China’s National Development and Reform Commission (NDRC) announced a raise in the retail price caps for gasoline and diesel, effective at midnight on 31 July. The adjustment marks the tenth increase this year, lifting gasoline caps by 685 yuan per tonne and diesel caps by 655 yuan per tonne. On average, the price of 92‑octane gasoline rises by 0.54 yuan per litre and diesel by 0.56 yuan per litre, meaning a full 50‑litre tank now costs about 27 yuan more. The move is a response to higher global crude prices driven by the ongoing Middle‑East conflict, including heightened tensions between the United States and Iran and Houthi attacks on Saudi oil tankers. Analysts expect the higher fuel cost to be passed on to private motorists, logistics firms and freight operators, raising operating expenses across the transport sector.

The price hike reflects China’s position as the world’s second‑largest oil consumer and could influence global oil markets, especially if further geopolitical developments sustain elevated crude prices.