China to link retail prices to global oil price

BEIJING, Dec 5 (Reuters) - China will indirectly link its retail fuel prices to international crude prices for the first time under a reform that will take effect from Jan.1, the country's top economic planning body said on Friday.

The National Development and Reform Commission said the reform would let refiners make a profit of around 4 percent over refinery gate prices plus transportation, so that retail prices will reflect both global oil price changes and oil companies' producing costs.

However, the government will retain the power to make appropriate adjustments, the NDRC said in a statement.