The National Development and Reform Commission announced on Tuesday it would launch a new pricing system to better reflect fluctuations in global oil prices.

The new system will shorten the current 22-day adjustment period to 10 days and remove the 4 percent limit, ushering in a more market-based mechanism that could better reflect production costs and energy shortages.

The previous oil product pricing system was introduced in 2009.

From Wednesday, China will cut the benchmark retail price of gasoline by 0.23 yuan per liter and diesel by 0.26 yuan per liter.