China likely to cut oil prices

China's price regulator is likely to cut the domestic guide prices for gasoline and diesel due to a continuing slide in global crude prices.

Xinhua's oil price system predicted retail prices would be reduced by 210 yuan (33 U.S. dollars) per tonne, or 0.1 yuan per liter, on Tuesday, which, if confirmed, would be the fifth cut since June and the eighth of the year.

Under an oil pricing policy in place since the start of 2013, the National Development and Reform Commission (NDRC) can adjust the price every 10 working days based on changes in the global market, should the change be more than 50 yuan per tonne.

During the past 10 working days, crude prices have continued to slip as the Organization of the Petroleum Exporting Countries (OPEC) decided to increase output, and a depreciating yuan triggered concerns on China's oil demand.

The benchmark light sweet crude for September on Aug. 13 fell 2.5 percent to close at 42.23 U.S. dollars a barrel on the New York Mercantile Exchange, the lowest level in six years.

Since the start of the year, the NDRC has lowered oil prices seven times and raised them five times. The retail price of gasoline and diesel have dropped by 120 yuan and 185 yuan per tonne respectively.