Retail price

Since 2006, gasoline prices have been determined using the floating oil price mechanism. Every Sunday, the state-owned petroleum company, Chinese Petroleum Corporation (CPC), announces the weekly prices for petroleum products.

The floating oil price equation is based on the oil pricing indicator, which refers to 70% of the Dubai crude oil price and 30% of the Brent crude oil price, abbreviated as 7D3B. The floating rate is calculated by the relative change of the current and previous week’s average 7D3B price and multiplied by 80% of fluctuation. This floating rate can be applied to gasoline and diesel.

In addition, the floating oil price mechanism ensures fairness. When the calculated price (before tax) exceeds the gasoline price (before tax) in certain Asian countries—such as