China and Indonesia have announced cut in retail fuel prices, to reflect the fall in international crude oil prices.
China will reduce oil products retail prices, cutting gasoline prices by CNY 1,015/t (US$145/t), i.e. around -14%, and diesel prices by CNY975/t (US$139/t) (-15.5%). This corresponds to cutting fuel prices to the floor rate of US$40/bbl defined under the current pricing mechanism. China adjusts domestic refined oil products prices - if they range between US$40/bbl and US$130/bbl - when international crude prices translate into a more than CNY 50/t (US$7.1/t) fluctuation for gasoline and diesel over a 10 day period, in an attempt to cushion international prices volatility. The National Development and Reform Commission (NDRC) has also asked Chinese oil companies to implement the pricing policy and to ensure a stable oil supply.
In Indonesia, the Ministry of Energy and Mineral Resources has removed the price floor for unsubsidised diesel and gasoline, to enable fuel distributors to reduce retail prices as low as possible. The price ceiling for fuels pegged to Singapore prices remains in force. Indonesia's state-owned oil company Pertamina is expected to take advantage of record low prices to increase crude oil imports, preferably under long-term purchasing contracts.