Core Insights - The domestic oil pricing mechanism in China is not arbitrary but is anchored to international crude oil prices, specifically three benchmarks: Brent, Dubai, and Minas [2][5] - The pricing adjustment cycle was shortened from 22 to 10 working days in 2013, allowing for more responsive changes to domestic fuel prices [2][3] - The introduction of a "ceiling price" and "floor price" aims to stabilize the market and protect both consumers and refining companies from extreme price fluctuations [5][6] Pricing Mechanism - The National Development and Reform Commission (NDRC) monitors the average prices of the three international benchmarks daily and adjusts domestic prices if the change exceeds 50 yuan per ton [2][5] - The adjustment mechanism includes a cap on price increases when international crude exceeds $130 per barrel and a floor when it falls below $40 [3][5] - The domestic oil price is influenced by various taxes, which account for nearly half of the final price, alongside refining and transportation costs [5][6] Recent Price Adjustments - In 2025, there were 25 pricing windows, with 17 adjustments made by August 28, showing a pattern of six increases, seven decreases, and four instances of no change [6][8] - Specific price changes included a significant drop of 480 yuan for gasoline and 465 yuan for diesel on April 17, followed by various adjustments throughout the year [6][8] - Cumulatively, by August 28, the total reductions for gasoline and diesel were approximately 330 yuan and 315 yuan, respectively, reflecting the ongoing responsiveness of the pricing mechanism to international market conditions [6][8]