📖How China Sets Fuel Prices: The Ten-Working-Day Mechanism

Published 2026-09-30 · 6 min read · China fuel

Retail fuel prices in China follow a published mechanism — a crude basket, a ten-working-day cycle, and floors and ceilings. Here is how it works.

The reference: a basket, not a single grade

Domestic fuel prices are linked not to one quoted grade but to a weighted average of several international crudes. Using a basket rather than a single benchmark smooths out sharp moves in any one grade and keeps the domestic price closer to the real structure of import costs. When that basket average moves materially against the previous adjustment round, the mechanism triggers a change.

Why ten working days

The ten-working-day cycle is a deliberate compromise between reflecting cost promptly and avoiding constant disruption. A shorter cycle would mean pump prices changing almost daily — costly for operators and confusing for the public. A longer one would leave prices detached from the international trend for extended periods. Ten working days, roughly two weeks, tracks the trend while keeping changes occasional.

Thresholds, ceilings and floors

The mechanism applies explicit thresholds: if the basket average moves by less than the set margin, no adjustment is made and the difference carries into the next round. More importantly, there are upper and lower bounds. When international crude rises above a certain level, refining margins are compressed and increases are damped or withheld to shield downstream users. When crude falls below a lower level, further cuts are suspended — the so-called floor price. Both are designed to stop extreme moves passing straight through to the domestic economy.

Why prices differ by province

What the national authority publishes is a maximum retail price for each province, not one uniform price. Provinces then set actual prices, and the differences come from transport distance to refineries and ports, regional distribution costs, local taxes and supply conditions. Inland provinces, far from the main refining base and import terminals, carry higher freight and are typically a little more expensive than coastal ones.

What 92, 95 and 98 actually mean

These numbers are research octane ratings, a measure of resistance to engine knocking. A higher number suits engines with higher compression ratios. The important point is that the rating describes knock resistance — it does not mean cleaner, purer or more economical fuel. The right approach is to use the grade recommended in your handbook or on the fuel flap; paying for a higher grade than your engine needs rarely delivers any real benefit.

When using the data on this site

The figures shown here are provincial maximum retail guidance prices. Stations frequently offer promotions or membership discounts, so what you actually pay may be slightly lower. Data is refreshed daily, so there can be a short lag around an official adjustment — during an adjustment window, rely on the posted price at the pump.

← Back to articles