Retail gas prices in China are just above-5 yuan per liter. [Photo: Xinhua]
The latest price cut has seen the National Development and Reform Commission cut the retail price.
The price is now 2 yuan per litre cheaper than it was before July when global oil prices started their downward trend, leaving drivers here in China with more cash in their wallets.
"I can save around 300 yuan each month after the price cut, it's a lot."
"It's good to know that the oil price drop, the shipment and delivery will be cheaper."
Retail gas prices in China are cut when international crude prices change by more than 50 yuan per ton over a period of 10 working days.
The significant decline in oil prices has some observers looking at oil as a viable alternative to other ways of powering industry.
Han Wenke is the head of the Energy Research Institute with National Development and Reform Commission.
"The price drop could help eliminate projects which have low energy efficiency and high pollution, including coal burning industries.Under the current low price environment, oil might be a more economical fuel."
However, the latest stats show the fuel price reductions aren't expected to have much impact on consumption.
Han Xiaoping is an analyst with the Chinese energy network.
"Statistics show the reduction oil prices had a limited impact on China's GDP last year, due to its low share of overall energy consumption. Oil only makes up 18 percent of energy consumption. So now, it is only getting cheaper to fill our oil tank, but nothing more."
The latest fuel price cut is the 13th time fuel prices have been reduced in China since July.
For CRI, I'm Min Rui.
