(Yicai Global) March 29 -- China will lower oil prices from April 1 as value-added tax cuts take effect.

The retail prices of gasoline and diesel will fall by CNY225 (USD33.4) and CNY200 per ton, respectively. Octane 92 gas will drop by CNY0.18 (USD0.03 cents), 95 octane will fall CNY0.19 and standard diesel will be CNY0.17 cheaper. 

The VAT rate for refined oil products will also decrease to 13 percent from 16 percent, per the statement.

Retail prices of gasoline and diesel would both otherwise have increased by CNY80 per ton starting from today, according to the latest price adjustments. 

China tweaks the prices of refined oil products when international crude oil price fluctuations translate into a change of at least CNY50 per ton for gas and diesel prices within a period of 10 working days, under the current pricing mechanism.

International crude prices have spiked to a nearly five-month high lately on tight supplies.

Editor: Ben Armour