July 5^th, the National Development and Reform Commission of China (NDRC) released a notification about cutting retail fuel prices for the fourth time in 2013. An analyst Liu Yun points out, it will reduce the costs of Chinese logistics industry, taxis and private cars by cutting retail gasoline and diesel prices. However, as the reduction is small, the practical effects will be limited.  

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According to NDRC on July 5^th, China will cut the retail price of gasoline by 80 yuan per ton and that of diesel by 75 yuan per ton since July 6^th. It is estimated the benchmark retail prices of 90-octane gasoline and No.0 diesel oil will be lowered by 0.06 yuan per liter.

The last time NDRC announced to adjust the retail fuel prices was June 2013. At that time, the retail price of gasoline increased by 100 yuan per ton and the retail price of diesel increased by 95 yuan per ton. Since China reformed its oil pricing mechanism, the prices of retail fuel have been up and down for five times.

Based on China's new oil pricing mechanism, domestic fuel prices are adjusted when international crude prices reflect a change of more than 50 yuan per ton for gasoline and diesel over a period of 10 working days. Recently, the oil prices in international market fell sharply at first. Then the price index was up concussion situation. NDRC claimed the adjustment was in accordance with the international market.

Liu Yun said cutting retail gasoline and diesel prices would reduce the costs of Chinese logistics industry, taxis and private cars. Taking a 50-ton van as an example, if the large van ran 10,000 km per month, its costs of fuel will reduce by 111 yuan after the new oil price policy is released.

NDRC demands that PetroChina, Sinopec and CNOOC should be responsible for the production management and conveyance of oil, in order to guarantee a stable supply of fuel. Moreover, relevant authorities will increase market supervision to regulate market order in China.