Reform of fuel-price system in works

China is working on a reform of the gasoline and diesel pricing mechanism to better reflect international crude costs, the head of the country's top economic planning agency said on Wednesday.

China currently adjusts its retail gasoline and diesel prices based on consideration of the 22-day moving average cost of a basket of crude grades, namely Brent, Dubai and Indonesia's Cinta.

Zhang Ping, head of the National Development and Reform Commission, said the 22-day pricing adjustment period is too long and cannot reflect frequent changes of international crude prices, so the country is considering cutting the period.