Shanghai will cut retail prices of gasoline and diesel from Saturday, the first price drop this year following the fall in global crude, the city's economic planner said.

The Shanghai Development and Reform Commission announced that the ceiling price for 92-octane gasoline will be 6.86 yuan (US$1.09) per liter, down from 7.00 yuan. A liter of 95-octane gasoline will sell at 7.30 yuan, dropping from 7.45 yuan, and diesel will be 6.49 yuan per liter, down from 6.63.

The measure takes effect from midnight Friday. Filling a private car with a 50 liter tank with 92-octane gasoline will be about 7 yuan cheaper from Saturday.

It is the first price cut this year following two increases in January. Domestic refined oil product prices are adjusted every 10 working days in line with fluctuations in global crude prices.

Global crude prices have fallen from a three-year high over the past two weeks “as the United States has been speeding up production to push inventory higher,” said Li Yan, crude analyst at oilchem.net, a domestic petrochemical consultancy.

US crude production has hit a record high of 10 million barrels per day, driven by surging prices last month “which in return dragged prices back these days", Li said.

Brent crude closed at US$64.81 a barrel Thursday after a continuous drop since February 1, at US$69.65.

Slumps across global stock markets have also hurt crude prices recently “as the downturn in stock markets dampened investor sentiment over the economic momentum,” Li said.