Executive Summary
On March 23, 2026, China announced temporary regulatory measures on domestic gasoline and diesel prices to mitigate the impact of surging international oil prices. The measures cap the price increase at 0.85 yuan per liter less than the calculated adjustment, reducing costs for private car owners by 40–50 yuan per tank and large trucks by 300–500 yuan. This marks the first proactive intervention under China’s 2013 pricing mechanism aimed specifically at curbing the impact of international oil price spikes, while ensuring stable market supply and protecting consumers.
On March 23, the National Development and Reform Commission (NDRC) announced that China would implement temporary regulatory measures on refined oil prices.
The NDRC explained that since the domestic adjustment of refined oil prices on March 9, international crude oil prices have surged due to the escalating conflict between the United States, Israel and Iran, with Middle Eastern crude reaching record highs. “To mitigate the impact of these abnormal international oil price increases, ease the burden on downstream users, and ensure stable economic operations and social welfare, temporary regulatory measures have been implemented for domestic refined oil prices, while maintaining the existing price mechanism framework.”
The NDRC also said that it will guide refined oil producers and distributors to optimize production and supply, ensure market availability, and work with authorities to strengthen oversight, investigate and penalize violations of national pricing policies, maintain market order, and safeguard consumer interests.
Gasoline and Diesel Prices Rise 0.85 Yuan/Liter Less
The U.S.-Iran conflict has entered its fourth week, and since the standoff remains deadlocked, the situation in the Strait of Hormuz has not changed significantly, keeping international oil prices high during this price adjustment cycle.
According to Longzhong Information, following this adjustment, diesel prices in most regions nationwide are between 8.3 yuan and 8.5 yuan per liter, and the retail ceiling for 92-octane gasoline is between 8.4 yuan and 8.5 yuan per liter.
Xu Wenwen, a crude oil analyst at Longzhong Information, said that for a typical private car with a 50-liter fuel tank, this adjustment would cost car owners an additional 44.5 yuan to fill a tank. For vehicles with an average urban fuel consumption of 7–8 liters per 100 kilometers, the cost per 100 kilometers would increase by roughly 6.68 yuan. For fully loaded 50-ton large logistics trucks, the average fuel cost per 100 kilometers would increase by about 38 yuan.
However, without temporary regulation, the price increase would have been higher. The NDRC stated that according to the current pricing mechanism, starting from 24:00 on March 23, the domestic maximum retail price of standard gasoline and diesel should rise by 2,205 yuan and 2,120 yuan per ton, respectively. To reduce the burden on downstream users, the country implemented temporary regulatory measures, resulting in an actual increase of 1,160 yuan per ton for gasoline and 1,115 yuan per ton for diesel, 1,045 yuan and 1,005 yuan less than the calculated increases. For private car owners, this means filling a 50–60 liter tank of 92-octane gasoline costs 40–50 yuan less; for large truck drivers with 400–600 liter tanks, filling up costs 300–500 yuan less.
First “Proactive Intervention” in 13 Years
Domestic oil prices have risen five consecutive times this year, prompting the NDRC to implement temporary regulatory measures for the latest adjustment.
This marks the first proactive intervention since the current refined oil pricing mechanism was introduced in 2013—which adjusts prices every ten working days within an international oil price range of $40 to $130 per barrel—specifically aimed at mitigating the impact of rising international oil prices, even though during this adjustment cycle, prices did not reach the $130 per barrel upper limit.
While price adjustments have been suspended in the past (e.g., in 2015 and 2022), those actions were not proactive measures aimed at curbing price increases.
In December 2015, international oil prices fell below $40 per barrel and remained at low levels. To protect domestic refining and upstream industries, avoid excessive losses, and ensure supply, the authorities announced consecutive suspensions of price reductions on December 15 and December 29, and in January 2016 officially set a $40 per barrel floor price, forming a complete price range mechanism.
In June 2022, international oil prices surpassed $130 per barrel. Under the pricing mechanism’s preset “ceiling price” clause, the NDRC opted not to raise domestic oil prices and instead provided phased subsidies to refining companies.