China Raises Gasoline Prices for Sixth Time This Year

China raised gasoline prices on April 7, 2026, marking the sixth such increase within the current year. The price hike comes as global oil prices remain elevated due to the ongoing war in Iran, though the Chinese government has limited the rate of the increase to mitigate the impact on domestic consumers.

The National Development and Reform Commission (NDRC), which serves as China’s economic planning agency, raised the price ceiling for gasoline by 420 yuan, or approximately $61 per ton. This figure is lower than the normal level of approximately 800 yuan, indicating the application of special measures initiated in late March to control energy prices within the country.

Simultaneously, the price of diesel fuel was increased by 400 yuan per ton, with the change taking effect at midnight on April 7, 2026. Under the Chinese system, energy prices are adjusted every 10 working days, and actual costs vary by region. In Shanghai, the price of 92 octane gasoline is expected to rise from 8.53 yuan per liter to approximately 8.9 yuan.

Economic Mitigation and State Intervention

Analysts report that state-owned oil companies are absorbing a portion of the increased costs to prevent sharper price spikes for the public. Specifically, Sinopec, a state-owned oil company, is cutting its profit margins on oil refining to shoulder these costs.

The Chinese government is preparing further price control measures should the energy crisis persist. Plans include the implementation of additional fiscal and tax measures if global oil prices reach $130 per barrel. As of the reporting date, Brent crude is trading at approximately $111 per barrel.

These interventions occur as President Xi Jinping has praised the resilience of the Chinese energy system amidst global volatility.

Impact of the Iran War on Energy Markets

The elevation in global oil prices is attributed to the war in Iran, which has disrupted oil shipments through the Strait of Hormuz. While these conflicts have shaken the energy market, reports indicate that China is considered to be at lower risk than other Asian countries.

The broader economic impact of the conflict is visible across multiple sectors in the region. In Thailand, the fishing sector has shown reluctance to sail as the Iran war drives up fuel costs. In Japan, the economic shock has rippled through various sectors, from breakfast costs to public baths, though Prime Minister Takaichi has stated that Japan possesses enough oil to last beyond the current year.

Within China, the energy crisis has created divergent outcomes for different industries:

• Chinese airlines have joined a rush to raise fuel surcharges.
• Coal miners are eyeing a comeback as the energy market is shaken.
• The electric vehicle sector has seen a positive shift, with BYD hailing a windfall as the oil crisis supercharges the outlook for Chinese EVs.
• Manufacturing has continued to expand despite trade disruptions linked to the situation in Iran.

PetroChina is currently plotting a $32 billion development drive, while downplaying the overall impact of the Iran conflict on its operations.