China has introduced temporary controls on fuel prices to limit the domestic impact of rapidly rising global oil prices. According to the state news agency Xinhua, this marks the first such intervention since the country’s fuel pricing mechanism was introduced over a decade ago. The National Development and Reform Commission (NDRC) raised the maximum retail prices of petrol and diesel from midnight but capped the increase through a temporary regulatory measure.

Under the new decision, petrol prices rose by 1,160 yuan per metric ton and diesel by 1,115 yuan, compared with potential increases of 2,205 yuan and 2,120 yuan respectively without intervention. The NDRC said the move aims to cushion the economy from abnormal international price shocks, reduce pressure on consumers and industries, and maintain economic stability.

An NDRC official stated that if global oil prices continue to rise, the government may provide tax and subsidy support to stabilize supply. The report also noted China’s ongoing investments in strategic oil reserves and renewable energy sectors to strengthen energy security.