Domestic Refined Oil Prices Cut Effective 24:00, August 14

At 24:00 on August 14, China’s latest round of refined oil price adjustment window opened, marking the fifth domestic price cut this year. During this pricing cycle, the average reference crude oil price stood at $82.14 per barrel, down 4.90% from the previous cycle. As of August 12, the crude oil price change rate remained negative throughout the entire cycle—initially declining sharply, but later rebounding due to renewed geopolitical tensions in the Middle East and the continued disruption of shipping through the Strait of Hormuz. This rebound in international oil prices narrowed the expected reduction in China’s retail refined oil price cap. The theoretical price cut is estimated at RMB 210 per ton, equivalent to a reduction of approximately RMB 0.15 per liter at the pump. For an average private car with a 70-liter fuel tank, this translates to savings of about RMB 11 per full tank. The final adjustment will be subject to the official announcement by China’s National Development and Reform Commission (NDRC).