China Curtails Fuel Price Hikes Amid Rising Global Energy Costs

Tue Mar 24 2026 14:07:54 GMT+0000 (Coordinated Universal Time)

In response to escalating fuel prices and unrest among drivers, China's government reduces planned fuel price increases to alleviate financial burdens on motorists.

China has decided to reduce planned increases in fuel prices to ease financial pressure on drivers as global energy costs surge, largely due to the ongoing Iran war. Initial price hikes were set to increase petrol and diesel costs significantly; however, following government adjustments, the increases will be nearly halved. Long lines at petrol stations have been observed across various cities, highlighting the urgency of the situation, as over 300 million people in China rely on petrol and diesel vehicles.

China has dialed back on planned fuel price hikes in a bid to reduce the burden on drivers due to surging energy costs amid the Iran war.

The local price of petrol has jumped about 20% since the start of the conflict, which has caused Iran to effectively close one of the world’s busiest oil shipping channels, the Strait of Hormuz.

Gasoline and diesel prices were initially set to rise by 2,205 yuan (£239; $320) and 2,120 yuan per tonne respectively – but after government adjustments, the increases will be nearly halved to 1,160 yuan and 1,115 yuan, starting Tuesday.

With over 300 million drivers reliant on these fuels in China, the surge in costs has been particularly concerning.

This latest price hike has been the country's fifth and largest of the year, despite the reduction.

Authorities have noted that long queues formed at petrol stations across multiple cities over the weekend, with some outlets running out of fuel.

Additionally, Brent crude oil prices recently jumped above $100 a barrel, indicating the volatility of global oil supply.

In conclusion, despite building one of the largest oil reserves globally, China's government is taking precautionary measures to stabilize prices domestically.