China Caps Fuel Price Hike Amid Oil Surge

China's government capped a significant fuel price increase on March 23, 2026, limiting the rise to about half the amount dictated by its standard pricing formula amid surging global oil costs driven by the ongoing conflict between the United States, Israel, and Iran. The adjustment, effective at midnight, prompted widespread panic buying, with long lines forming at gas stations across the country as drivers rushed to refuel.

The National Development and Reform Commission, China's state economic planner, announced the hike in retail prices for gasoline and diesel, raising the maximum by 1,160 yuan per metric tonne for gasoline and 1,115 yuan for diesel. Without the cap, prices would have increased by 2,205 yuan and 2,120 yuan per tonne, respectively, based on the mechanism that ties domestic rates to international crude benchmarks every 10 working days. The intervention marked the first proactive limit on a price rise since the current system was introduced in 2013, aimed at cushioning the effects of "abnormal" global oil spikes while preserving the overall framework.

The surge in international prices stemmed from escalating tensions in the Middle East, where the war has led to...