Domestic Fuel Prices Set for Fourth Consecutive Increase Amid Geopolitical Tensions

Domestic fuel prices in China are expected to rise for the fourth consecutive time as the new pricing window opens on March 9 at 24:00, according to Jin10. Analysts from various institutions suggest that recent geopolitical tensions have significantly influenced crude oil pricing. Initially, investors were closely monitoring the progress of U.S.-Iran negotiations, alongside factors such as the increase in U.S. crude oil inventories, including strategic reserves, and the uncertainty brought by new U.S. tariffs on the global economy and fuel demand. These factors contributed to a volatile crude oil market. However, since late February, the escalation of military conflicts between the U.S. and Iran, including Iran's blockade of the Hormuz Strait, has disrupted oil supply and transportation in the region, leading to a significant rise in oil prices, reaching a 20-month high. Based on the current crude oil levels, Jinlianchuang estimates that the upcoming fuel price increase could be around 600 yuan per ton, translating to an increase of approximately 0.47-0.51 yuan per liter. For gasoline, this means that filling up a 50-liter tank in a small car will cost an additional 23.5 yuan. For diesel, filling up a 140-liter tank in a large truck will incur an additional cost of about 71.4 yuan.