China has cut retail oil prices by about 5% which is China’s third cut in two months.
China, the world’s second biggest consumer of fuel, has made the move in response to lower international crude prices and changes in the “conditions of domestic and international economies, as well as the domestic refined oil market,” according to the National Development and Reform Commission.
However, some analysts said that if there are further cuts, it could squeeze the profits of state-owned and private refineries.
Lower retail prices are also likely to further ease inflation which cooled in June to the lowest level in more than two years.
