China imposes temporary price controls amid oil price surge

China has introduced temporary regulatory measures on fuel prices to cushion the impact of rising oil prices in international markets, marking the first intervention of this kind since the current pricing mechanism was introduced in 2013, state news agency Xinhua reported.

In recent years, refined fuel prices have been adjusted in line with that system, making this decision an exception in response to volatility driven by the war in the Middle East.

According to a statement from the National Development and Reform Commission (NDRC), the country’s top economic planner, higher crude prices stemming from the conflict between the United States, Israel, and Iran have pushed up international prices—particularly in the Middle East—prompting authorities to step in to contain their impact on the domestic market.

Authorities said the goal is to “mitigate the impact of abnormal increases in international oil prices,” “reduce the burden on consumers,” and “ensure economic and social stability.”

The NDRC warned of penalties for practices such as non-compliance with pricing policies or market disruption.

The move comes amid heightened energy market volatility following weeks of tensions over the Strait of Hormuz and attacks on key infrastructure, which have pushed oil prices above $100 per barrel on several occasions in recent weeks.