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BEIJING, Dec. 26 -- China's top economic planner announced a cut on the retail price of gasoline by 520 yuan (85 U.S. dollars) and that of diesel by 500 yuan per tonne.

The adjustment, effective on Saturday, means retail prices will drop by 0.39 yuan per liter for gas and 0.43 yuan per liter for diesel, according to the National Development and Reform Commission.

The cut marks the 10th since July.

China has a pricing regime which adjusts domestic fuel prices when international crude prices change by more than 50 yuan per tonne during a time span of 10 working days.

The last time China cut the fuel retail price on Dec. 12, it also decided to impose higher taxes on the products, the second increase in a month.

Tax on gasoline, naphtha, solvent oil and lubricating oil will rise to 1.4 yuan per liter from 1.12 yuan. The levy on diesel, jet fuel and fuel oil will be increased from 0.94 yuan per liter to 1.1 yuan, according to the Ministry of Finance and the State Administration of Taxation.