SHENZHEN is likely to cut its gasoline and diesel prices this week, as global crude oil prices fell over the past week, Shenzhen Economic Daily reported Thursday.

    China has cut retail gas prices six times since the beginning of July. The last cut was on Oct. 17.

    A pricing plan that came into effect last year stipulates that domestic fuel prices will be adjusted when international crude oil prices change by more than 50 yuan (US$8.14) per ton for 10 working days.

    Analysts said the retail prices of crude oil are expected to decrease again by 285 yuan per ton Saturday, meaning that the retail prices of No. 92 gasoline and diesel fuel will drop by 0.22 yuan and 0.24 yuan per liter, respectively.

    The price of No. 92 gas, most commonly used as automobile fuel, is very likely to fall below 7 yuan per liter, analysts said.

    A fuel price drop would benefit the city’s car owners in addition to transportation and logistics enterprises.

    Fuel costs account for a third of the total operating costs of logistics companies, so the drop will definitely help these enterprises save money, an analyst, Liu Yun, said.

    For example, in the transportation industry, a heavy-duty vehicle with a 50-ton capacity that runs 10,000 kilometers a month consumes 38 liters of diesel fuel per 100 kilometers. If the diesel price drops by 0.25 yuan per liter this week, that will bring 475 yuan in savings per truck over the next 10 working days.

    The price cut will also allow air companies to reduce expenditures as fuel costs account for 40 percent of the total operating costs of most domestic air companies.

    In addition, the cut will bring down the cost for many enterprises related to the petrochemical industry, including chemical fertilizer, fiber and plastic companies.

    However, enterprises that refine oil will be hurt and are expected to see their revenues drop.

    Less expensive petroleum will also decrease the demand for new energies in the short run and hinder their development.

    (Zhang Yang)