China Releases New Pricing System for Fuel
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China has launched a new pricing system for fuel which sets up a price floor and ceiling.

Under the system, the price floor is at 40 U.S. dollars a barrel and the price ceiling at 130 dollars.

This means that when the global price tumbles below 40 dollars a barrel, the domestic prices will not be reduced accordingly, and vice versa.

Within the range of 40 and 130 dollars, domestic fuel prices will be adjusted based on the changes in global prices.

Top economic planner the National Development and Reform Commission will also establish a reserve fund to cut emission and increase the quality of fuel with the surplus money coming from the price floor.

At the same time, the NDRC has decided to reduce prices for gas and diesel by around 0.1 yuan per liter, starting from Thursday.

Author： 　　　Source：xinhua　　　 Editor：Yang Fan