BEIJING - China will institute a more market-oriented jet fuel pricing mechanism starting August, the country's top economic planner said Tuesday.

Under the mechanism, jet fuel producers and their clients can negotiate and reprice jet fuel on the first day of each month, the National Development and Reform Commission said in an online statement.

This at-cost price, usually offering jet fuel at a premium, should be no higher than the after-tax CIF price of the jet fuel imported from Singapore, said the statement.

The move aims to improve the formation mechanism of the jet fuel's at-cost price, it said.

According to the statement, jet fuel producers and their clients can negotiate the jet fuel premium and review it once a year when taking into account factors such as the transportation cost, trade volume and international crude oil prices.

Currently, the country's jet fuel prices should obtain authorities' approval before being adjusted.

The government has reduced its import tariff on jet fuel to zero starting July, according to the Ministry of Finance. The import tariff on aircraft fuel was previously set at 6 percent.