China said on Wednesday it would subsidize refineries if global oil prices rise above $130 a barrel, reiterating its current fuel policy, which closely monitors international markets but also seeks to protect consumers from shocks. prices.
Subsidies will be measured based on actual sales volume of gasoline and diesel and pass-throughs will initially last for two months, before further announcements, if oil prices consistently stay above $130, the ministry said.
“The subsidy is to safeguard stable fuel supplies, lower costs for manufacturers and lighten the burden on consumers,” the ministry said on its website.
Under China’s pricing system in place since 2016, retail fuel prices are assessed every 10 business days to track global crude oil benchmarks when prices fluctuate between $40 and $130.
However, prices have more modest changes when global oil exceeds $80, and retail prices change only marginally or freeze if global markets expand outside the $40 to $130 range.
Benchmark Brent crude futures are trading around $118 a barrel on Wednesday, having fluctuated between $100 and $120 over the past three months, as investors weighed tight supply amid the crisis. Ukraine and the downturn in the global economy.
Source: CNN Brasil
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