China's refined oil pricing mechanism is playing a crucial role as a "stabilizer" for the national economy, effectively cushioning the country against the impact of volatile international markets, industry experts said.

As geopolitical tensions in the Middle East continue to disrupt global crude supplies, China's policy of setting specific adjustment cycles and pricing boundaries has become a vital tool in dampening external shocks.

Dong Xiucheng, professor with the University of International Business and Economics, said that the intensity of national fuel price regulations has balanced both market supply security and the endurance of downstream users.

The goal is to shield consumers from the impact of abnormal price fluctuations while appropriately passing through crude oil import costs to ensure a stable supply of refined oil products, according to Dong.

The comments followed an announcement by the National Development and Reform Commission (NDRC) on Tuesday, stating that domestic retail prices for gasoline and diesel will be raised starting Wednesday — but at a significantly lower rate than market trends would suggest.

Starting at midnight on April 7, gasoline and diesel prices will increase by 420 yuan ($58.5) and 400 yuan per metric ton, respectively.

Under the standard pricing mechanism — which tracks global crude movements every 10 working days — the sharp rise in global prices since late March would have necessitated a much steeper hike of 800 yuan per ton for gasoline and 770 yuan for diesel.

To bolster this "stabilizer" effect, the NDRC has coordinated with major State-owned oil giants — China National Petroleum Corp (CNPC), China Petroleum and Chemical Corp (Sinopec), and China National Offshore Oil Corp (CNOOC) — to optimize production and logistics, ensuring the market remains well-supplied.

Local authorities have also been directed to step up market supervision to prevent price gouging or violations of the national pricing policy.

Experts believe that maintaining the continuity and predictability of such macro policies will be essential for supporting China's "steady growth" targets as the global energy landscape remains unpredictable.

A key component of China's protective mechanism is the price "ceiling" and "floor" system. If international crude prices exceed $130 per barrel, domestic fuel prices will either not be raised or will be raised by a reduced margin to protect the real economy.