Panicked motorists stood in long lines outside gas stations across China on Monday after receiving warnings from Chinese oil giant Sinopec about pending price increases.
The state’s refineries issued a notice on Sunday saying they would be increasing gasoline prices “significantly” starting March 24.
“As soon as I received the notification, I ran out to get gas,” Beijing resident Zhouping said while waiting in his car at a downtown gas station.
Prices could reach 2,205 yuan per ton, equivalent to about $1 per gallon.
In response to public panic, the country’s policymakers, the National Development and Reform Commission, lowered the hike to 1,160 yuan per tonne. For the average Chinese driver, this increase remains a significant expense. Currently, gas prices in China are about $4.50 per gallon.
Zhang Jiarong calculates that the price increase will cost him about $300 more per month. “This is going to have a huge impact on my life,” he told CNBC.
China controls prices at the pump. However, as oil prices soared due to the war between the United States and Israel against Iran, authorities earlier this month raised the cap by the largest amount in four years.
Kitty Cheung and other Chinese drivers have voiced their displeasure with President Donald Trump as the U.S. and Chinese governments continue to hint at a delay to a summit with Chinese President Xi Jinping to be held in China later this year.
“If Trump hadn’t started the war, if Israel hadn’t started the war, I wouldn’t be sitting here all day waiting for gas, would I?” she said.
