A worker fills his tank at a gas station in Shenyang, capital of Northeast China's Liaoning Province, on Wednesday. China reduced retail prices of gasoline and diesel from Wednesday based on recent changes in international oil prices. The retail price of gasoline was reduced by 420 yuan ($60) per ton and diesel by 405 yuan, according to the National Development and Reform Commission. Photo: cnsphotos

China will increase retail prices of refined oil products in light of a boost in international oil prices, according to a document released on Sunday by the National Development and Reform Commission (NDRC), China's top economic planner.

Starting Monday, the prices of gasoline and diesel will be increased by 120 yuan ($16.96) and 110 yuan per ton, respectively, the NDRC said.

Consumers will increase about five yuan to fill a car's fuel tank with a capacity of 50 liters, said Zhang Jinyi, an oil analyst at market information provider Subline China Information Co.

This is the first time to increase retail prices of refined oil products this year given stronger international oil prices in recent days, after the country hadn't adjusted the prices for six consecutive times since March 31 because they had touched the floor rates, analysts said. 

Two months ago, many industry insiders reiterated China should cancel the floor rates for economic recovery.

In the third quarter this year, the crude oil market will likely enter a stage of a resurgence as countries ease COVID-19 lockdown measures. This will be conducive to domestic market for wholesale oil products, said Xupeng, an oil analyst at domestic market information provider JLC. 

The West Texas Intermediate (WTI) for July delivery shed $0.23 to settle at $38.49 a barrel on the New York Mercantile Exchange, while Brent crude for August delivery dipped $0.03 to close at $41.02 per barrel on the London ICE Futures Exchange. 

According to the current pricing mechanism, China will adjust domestic prices of refined oil products when international crude prices translate into a change of more than 50 yuan per ton for a period of 10 working days, but will not do so if the international oil prices go below the floor of $40 or the ceiling of $130 per barrel.