China Cuts Gas Prices and Surcharges on Domestic Flights

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Jan. 15 – China has cut fuel prices and suspended fuel surcharges on domestic flights beginning today.

China’s top economic planner and the Civil Aviation Administration of China (CAAC) announced the suspension of the fuel surcharge was due to declining kerosene prices and from now any adjustments on fuel surcharges will be based on kerosene price changes.

The fuel surcharge for domestic flights will be reduced from RMB150 yuan to RMB40 yuan for flights more than 800 kilometers, and 80 yuan to 20 yuan for flights below 800 kilometers.

China has also reduced the retail prices of gasoline by 2.2 percent and diesel by 3.2 percent.

Sinopec will cut the price of its popular 93-octane gasoline by 2.2 percent to RMB4.95 at majority of gas stations although for those stations located in more competitive areas of the city, the previous rate of RMB4.71 a liter will remain.

On the other hand, PetroChina, will not reduce prices right away. The National Development and Reform Commission told Shanghai Daily that refinery-gate fuel prices would be reduced again for the second time this month because of lower oil prices and as a way to boost economic growth.