China's benchmark crude costs down 5 pct-analyst

BEIJING, July 27 (Reuters) - The 22-day moving average of global crude prices against which Chinese retail fuel is priced has dropped by more than 5 percent since Beijing's last price hike, an industry analyst said on Monday.

Under a new price system, in effect since the beginning of the year, China has said it will readjust fuel prices when the moving average shifts more than 4 percent

"The moving average of a basket of crudes has fallen by 5.21 percent by July 24 according to our calculations. If the government is serious about the new pricing mechanism, it should consider cutting prices," said Liu Bo of Guojin Securities.

China last raised retail guidance prices for gasoline and diesel on June 30, the second increase in a month, to track a strong rebound in global crude markets. (Reporting by Chen Aizhu and Jim Bai; Editing by Michael Urquhart)