China will not adjust fuel prices frequently - NDRC

China promised on Thursday that motorists and refineries would see fuel prices follow international crude oil prices more quickly than in the past, but it still would not adjust the nation's fuel prices very often.

The National Development and Reform Commission, a powerful ministry that sets prices for key energy products including oil, gas and power, was trying to explain the thinking behind a cut in gasoline and diesel prices that came into effect on Thursday.

The scale of the cuts -- a few percent -- was the smallest for years and the period since the last reduction was only 27 days, the shortest since the summer of 2005. It was the first price change since China brought in a new fuel price system on December 19.

"Considering domestic conditions, it is not appropriate to change fuel prices too frequently, and the new pricing mechanism has stipulated the shortest time frame between two adjustments," the commission said in a release on its website www.ndrc.gov.cn.

The release, an apparent attempt to assuage market concerns of the opaque process of price-setting, stopped short of specifying the timeframe, leaving the market in the dark and guessing when a change would materialise, as in the past.

When the draft fuel price reform was still being debated at the end of last year, an official source told Reuters that price change would only be considered every 10 days or more and by a maximum of 800 yuan per tonne each month, or 1,600 within three months.

"As to when a price change will be made next time, it mainly depends on the changes in international crude oil prices," the commission said. 

"According to the new mechanism, when changes in the average prices of several types of crude oil on the international market exceed a certain level for a certain period of time, domestic prices for refined oil products will be correspondingly adjusted."

It has never disclosed what the level is or what types of crude oil are included in its calculation.

State media has reported that the average crude price is based on a basket of Brent, Dubai and Minas blends of crude oil.