China on Wednesday announced a third cut in fuel prices in just two months as falling international crude prices gave room for about 5 percent reduction in prices to deal with a drop in domestic oil consumption.
The National Development and Reform Commission (NDRC) said that gasoline retail prices will be reduced by 420 yuan a tonne and diesel prices by 400 yuan, starting Wednesday.
The NDRC said that the move was made in response to lower international crude prices and changes in global as well as domestic economic conditions.
The National Bureau of Statistics reported Monday that the consumer price inflation slowed to 2.2 percent in June from 3 percent in May and 3.4 percent in April.
Subdued inflation gives room for policy makers to ease monetary policy to support the economy. The People's Bank of China last week reduced the interest rates second time this year with economic growth expected to weaken further in the second quarter.
The gross domestic product is expected to rise 7.7 percent in the second quarter, the weakest pace since 2009. The estimated growth rate is only a tad above the government's target of 7.5 percent. The economy grew at an annual rate of 8.1 percent in the first quarter.
by RTT Staff Writer
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