KUALA LUMPUR - China has capped the increase in domestic fuel prices to reduce the impact of rising global oil costs linked to the Middle East conflict.

Global oil prices have surged as tensions involving the United States, Israel and Iran focus on the Strait of Hormuz.

“To mitigate the impact of abnormal increases in international oil prices, ease the burden on downstream users, and ensure stable economic operations and public welfare, temporary regulatory measures have been adopted,” China’s state planner said in a statement yesterday.

The National Development and Reform Commission said it will raise the maximum retail prices for gasoline and diesel by 1,160 yuan (RM660) and 1,115 yuan (RM635) per metric tonne, starting from midnight.

It said the increase is about half of what would have been applied under the usual pricing system, which would have raised gasoline and diesel prices by 2,205 yuan (RM1,265) and 2,120 yuan (RM1,207) per metric tonne.

The commission regularly reviews fuel prices and adjusts them based on global crude oil trends.

In its previous adjustment in March, it raised maximum retail prices for gasoline and diesel by 695 yuan (RM395) and 670 yuan (RM380) per metric tonne.

At the same time, the government urged parties involved in the Middle East conflict, especially the United States and Israel, to stop military actions to prevent further escalation.

“The one who tied the bell must be the one to untie it,” said Zhai Jun at a briefing after visits to Saudi Arabia, the United Arab Emirates and Kuwait.

He said China will continue engaging all sides and work to reduce tensions while promoting peace and stability in the region.

In a separate briefing, Lin Jian warned that using force would lead to a “vicious cycle” and said the conflict should not have started.

“Should the hostilities continue to spread and intensify, the entire region will be plunged into chaos,” he said.

Meanwhile, Donald Trump has given Iran a 48-hour deadline to reopen the Strait of Hormuz, warning of further attacks if it fails to comply.

Iran’s actions have effectively disrupted the key waterway, which handles about one-fifth of global oil and liquefied natural gas trade, triggering the worst oil crisis since the 1970s.