Per liter increases by 0.85 yuan less! Finished oil prices, temporary price adjustment!

The National Development and Reform Commission announced on March 23 that since the domestic refined oil price adjustment on March 9, international crude oil prices have surged significantly due to intensified conflicts between the US, Israel, and Iran, with Middle Eastern crude reaching record highs. To mitigate the impact of abnormal international oil price increases, reduce downstream user burdens, ensure stable economic operation, and safeguard social well-being, temporary regulatory measures have been taken on domestic refined oil prices based on the current pricing mechanism framework.

According to the current pricing mechanism, on March 23, the domestic prices of gasoline and diesel (standard products) should each increase by 2,205 yuan and 2,120 yuan per ton, respectively. After adjustment, the actual increase is 1,160 yuan and 1,115 yuan.

Converted to per-liter prices, this adjustment results in an increase of about 0.87 yuan and 0.95 yuan per liter for gasoline and diesel, respectively, which is about 0.85 yuan less per liter than if no regulation had been applied.

The National Development and Reform Commission stated that it will guide refined oil production and sales enterprises to fully organize production and transportation to ensure market supply. It will also cooperate with relevant departments to strengthen market supervision and inspection, strictly investigate illegal activities such as non-compliance with national pricing policies, and effectively maintain market order and protect consumer interests.

Recently, the Strait of Hormuz, known as the “world’s oil valve,” has become a focal point of global market attention. During this price adjustment cycle, international crude oil prices continued to rise, with no signs of easing in the US-Iran conflict. Shipping through the Strait of Hormuz has been obstructed, with only a few ships able to pass. Oil-producing countries like Saudi Arabia have been forced to cut production, increasing supply risks and providing strong support for oil prices.

Ping An Securities believes that Middle Eastern geopolitical risks are difficult to alleviate, the Strait of Hormuz remains blocked, and major Middle Eastern oil producers are gradually reducing output due to capacity limits. Additionally, the risk of attacks on energy facilities remains high. Oil and petroleum product supplies are further fermenting, and short-term oil prices are likely to remain volatile with a slight upward trend. In the medium to long term, as OPEC+ pushes for increased production and American oil fields are further developed, a surplus in fundamentals will become apparent, and oil prices may further decline in the central range.