JC Master Information | What is the legal basis for the National Development and Reform Commission’s temporary adjustments to oil prices?

　　The National Development and Reform Commission recently stated that, since the domestic refined oil price adjustment on March 9, international crude oil prices have risen sharply amid escalating U.S.-Israel–Iran tensions, with Middle Eastern crude prices repeatedly hitting record highs. To mitigate the impact of this unusual surge in global oil prices, ease the burden on downstream consumers, and ensure stable economic performance and social well-being, temporary regulatory measures have been implemented to adjust domestic refined oil prices, while maintaining the existing pricing mechanism framework.

　　Under the current pricing mechanism, effective from 24:00 on March 23, the maximum retail prices for domestic gasoline and diesel (standard grades) should have been raised by RMB 2,205 and RMB 2,120 per ton, respectively. To ease the burden on downstream users, the state implemented temporary price‑adjustment measures, resulting in an actual increase of RMB 1,160 and RMB 1,115 per ton for gasoline and diesel, respectively—RMB 1,045 and RMB 1,005 less than the originally planned hikes. In terms of price per liter, this adjustment translates into increases of approximately RMB 0.87 and RMB 0.95 per liter for gasoline and diesel, standard grades, respectively—equivalent to a nationwide average reduction of about RMB 0.85 per liter. For private car owners, assuming a fuel tank capacity of 50–60 liters, filling up with No. 92 gasoline would save roughly RMB 40–50; for heavy‑truck drivers, with a tank capacity of 400–600 liters, a full refuel would reduce expenses by approximately RMB 300–500.

　　The National Development and Reform Commission will guide refined oil producers and marketers to make every effort to organize production and ensure timely distribution, thereby safeguarding market supply. It will also work with relevant authorities to strengthen market supervision and inspection, rigorously investigate and prosecute violations of national pricing policies and other illegal or non-compliant practices, and effectively uphold market order while protecting consumer interests.

　 　From the perspective of the current legal framework, its institutional basis is primarily as follows:

　　Direct basis: Measures for the Administration of Oil Prices (Notice of the National Development and Reform Commission on Further Improving the Mechanism for Forming Refined Oil Prices)

　　This serves as the most direct basis for the National Development and Reform Commission’s temporary adjustments to oil prices. The measure was formulated with authorization from the State Council and constitutes a departmental normative document, explicitly stipulating that, under special circumstances, price adjustments may be suspended, deferred, or scaled back.

　　Regular adjustment rules: In principle, gasoline and diesel prices are adjusted every 10 working days in line with changes in international oil prices.

　　Special Circumstances and Procedures: Temporary controls may be activated when any of the following special circumstances arise:

　　The overall domestic price level has risen significantly; a major emergency has occurred; and international oil prices have experienced sharp, short-term volatility.

　　Implementation Procedure: The aforementioned regulatory measures shall be implemented only after being submitted by the National Development and Reform Commission to the State Council for approval.

　　Accordingly, the measure adopted in March 2026—namely, “implementing temporary regulatory measures for domestic refined oil prices while maintaining the existing price‑setting framework”—was taken precisely in accordance with Article 7 of this regulation, in response to a sharp rise in international oil prices.

　　Fundamental basis: The Price Law of the People’s Republic of China

　　The Price Law serves as the overarching legislation for all price‑intervention measures, providing the fundamental legal basis for the Measures for the Administration of Petroleum Prices and for specific temporary regulatory measures.

　　Legal Basis: Article 30 of the Price Law provides that, when the prices of essential goods and services experience a significant increase or are likely to do so, the State Council and provincial governments may adopt temporary price‑control measures, including setting maximum price differentials, imposing price ceilings, requiring price‑increase filings, and mandating price‑adjustment registrations. Refined petroleum products, as an important energy commodity, fall within this category.

　　Conditions for lifting: Article 32 of the Price Law stipulates that, upon the elimination of the circumstances giving rise to intervention, the relevant measures shall be promptly lifted.

　　Liability for violations: Article 39 of the Price Law stipulates the penalties applicable to operators who fail to comply with temporary price intervention measures.