China will lower domestic retail prices for gasoline and diesel, reflecting a fall in international oil prices as Iran-US peace talks have eased concern about supply disruption through the Strait of Hormuz, Reuters reports.

The reduction in the official price ceiling, which sets the maximum retail selling price, follows two previous cuts in the space of a month.

It is China’s single biggest reduction in more than six years and lowers retail fuel prices to less than 2 per cent above the levels before US-Israeli airstrikes began the Iran war at the end of February.

Gasoline and diesel ceiling prices will fall by 950 yuan ($140.10) and 915 yuan per metric ton, respectively, to 8,175 yuan per ton and 7,170 yuan per ton, the National Development and Reform Commission (NDRC) said in a notice.

The NDRC reviews and adjusts retail gasoline and diesel prices every 10 working days.