The Hong Kong subsidiary of Sinopec (600028, 0386.HK) announced it lowered prices of gasoline and diesel by HK$0.1 and HK$0.18 per liter yesterday, reports the Beijing News. Premium gasoline, gasoline, and diesel prices in Hong Kong will be HK$17.34, HK$16.4, and HK$11.6 per liter after the price cut.

Shell Hong Kong also lowered its gasoline and diesel prices yesterday to the same level of Sinopec Hong Kong. Shell explained that its own price adjustment was a reaction to Singapore’s gasoline FOB price, the benchmark for oil prices in the Asia-Pacific region.

In light of the US debt ceiling crisis, international oil prices have tumbled for three straight trading sessions. However, domestic oil prices stood still due to a backward pricing system, the report said.

Sinopec announced yesterday that it will increase gasoline production to meet surging demand in the forthcoming peak season.