China has increased domestic retail prices for petrol and diesel following higher international crude oil prices.

The country’s top economic planner announced the adjustment after global energy markets experienced renewed volatility linked to geopolitical developments.

The increase is expected to raise transportation and logistics costs for businesses across China. Manufacturers and freight operators are monitoring fuel prices closely as they assess the impact on operating expenses and supply chains.

China adjusts domestic fuel prices regularly under a pricing mechanism linked to changes in international crude oil markets. Officials said the latest adjustment reflects sustained increases in global energy prices.

Energy analysts say businesses may need to implement additional cost-saving measures if fuel prices remain elevated over an extended period. Higher transportation costs could also influence inflation and consumer prices.

Despite the increase, economists believe China’s strategic fuel reserves and stable energy policies will help minimise the broader economic impact of rising oil prices.

Source: Reuters