While attention is focused on China's fast-growing new energy vehicle industry, an unnoticed phenomenon is providing a new boost to the industry's growth - international oil prices have reached a nearly three-year high level.

International oil prices have continued to rise recently, which will present opportunities for the development of new energy sources and will also drive a green transition in areas including transportation, CCTV cited experts as saying Monday.

Higher oil prices seen as boon to new energy vehicle industry-CnEVPost

(Screenshot of the CCTV report.)

So far, the price of Brent crude oil futures expiring in September reached $73.85 a barrel, a new high since October 2018. The price of WTI crude oil futures expiring in August reached $72.67 a barrel, a new high since September 2018.

Higher oil prices seen as boon to new energy vehicle industry-CnEVPost

Higher oil prices seen as boon to new energy vehicle industry-CnEVPost

For China, the pricing of domestic refined oil products moves in response to international oil prices. Chinese consumers are also paying more for gasoline at a time when prices are rising in the international market.

China's latest price adjustment window for refined oil products opened at 24:00 on June 28, with gasoline and diesel prices rising by RMB 225 ($34.8) and RMB 215 per ton, respectively.

This resulted in the retail price of No. 92 gasoline rising to above RMB 7 per liter in most of China. For a family car with a 50L tank capacity, it will cost consumers an extra RMB 9 yuan to fill up a tank of No. 92 gasoline.

CCTV quoted experts as saying that if oil prices continue to remain high, it will drive a green and low-carbon transition in several industries in China, with electricity playing a greater role as a substitute.

The report quoted Lv Jianzhong from the CNPC Economics & Technology Research Institute as saying that the current oil prices may have reached a plateau and could oscillate broadly at a high level.

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