China will introduce a more market-oriented jet fuel pricing mechanism starting on August 1, said the National Development and Reform Commission, on July 12.

The move aims to improve the formation mechanism of jet fuel at-cost price.

This at-cost price should not exceed the after-tax CIF price (cost, insurance and freight price) of jet fuel imported from Singapore.

Jet fuel producers and their clients can negotiate the fuel premium and review it once a year when taking into account factors such as the transportation costs, trade volume and international crude oil prices.

Jet fuel producers and their clients can negotiate and re-price jet fuel on the first day of each month.

Currently, adjustments of the country's jet fuel prices require authorities' approval.