China plans to lower wholesale aviation fuel prices

China intends to bring down aviation fuel costs as ahead of schedule as July.  It is part of Beijing’s promise to lessen business costs in an abating economy, said an oil industry official and a representative with the Chinese flight specialist.

The slices will apply to both ex-treatment facility costs and rates charged to carriers by China’s overwhelming plane fuel merchant China National Aviation Fuel Group (CNAF), and could add up to an all-out yearly reserve funds to aircrafts of more than one billion yuan ($145 million), said the business official on Thursday.

“This is part of the aviation authority’s response to the (Chinese) Cabinet call to help smaller businesses and consumers, as the economy is really slowing,” said the executive, who declined to be named due to company policy.

The National Development and Reform Commission (NDRC) is required to change an equation that has been utilized since 2011 to set the locally created aeronautics fuel costs charged by state oil purifiers, said the official.