China Offers Refiners Subsidies If Oil Jumps to Shield Consumers
- Mechanism will kick in should prices climb above $130 a barrel
- Oil has gained this year on economic rebound, Russian invasion
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China will offer oil refiners subsidies should international crude prices surge above $130 a barrel to ensure the stable supply of fuels and prevent processors from passing on higher costs to consumers.
The move is to lower economic costs and ease consumer burdens, along with ensuring the safe and stable supply of oil products, according to a statement from the Ministry of Finance. Refiners and fuel traders who produce or import gasoline and diesel will be offered subsidies for as long as two months if crude prices breach the targeted ceiling, details from the statement show.