The National Development and Reform Commission, China's top economic planner, announced on Wednesday that it is introducing a new pricing system that will set floor and ceiling prices for domestic refined oil products. According to the statement of the commission, the new pricing system will allow the price of domestic refined oil products to be adjusted within the range of $40 to $130 per barrel based on changes in the price of international crude oil.

Under the new pricing system, the commission cut the price of standard gasoline by 0.1 yuan at the pump and standard diesel by 0.01 yuan.

But the commission said that China will not lower fuel prices even if the global price of crude oil falls further than its current 12-year low of $30 a barrel.

The main aim in setting the $40 floor price is to protect the nation's energy security. A fuel price that is too low would deepen the level of China's dependence on the external oil market, which has already reached 60 percent.

The government also aims to promote energy conservation and the development of new energy to help wean the country off its reliance on fossil fuels.