China cuts fuel prices for first time in 16 months
China's top economic planning agency has reduced the retail price of gasoline by 0.22 yuan ($0.03) per liter -- the first price cut since June 2010, reported the state-owned Xinhua news service.
The National Development and Reform Commission also is cutting the retail price of diesel fuel by 0.26 yuan per liter. The commission announced its decision on Saturday.
Under China's rules, the commission can adjust prices when average crude oil prices move up or down by 4 percent within 22 consecutive business days, according to Xinhua.
The price cut should ease inflation in China, where the consumper price index peaked at 6.4 percent in June.
