Home / Business / Energy Tools: Save | Print | E-mail | Most Read | Comment
Oil price scheme stays intact
Adjust font size:

China said yesterday that its market-based oil pricing scheme stayed intact, despite holding off a much-anticipated price hike last week.

The step back from a possible 6-8 percent increase in retail gasoline and diesel prices, which would have been the fourth this year, sent share prices of state refiner Sinopec Corp down 3 percent in Hong Kong and 10 percent lower in Shanghai yesterday.

The National Development and Reform Commission, China's top economic planner, said yesterday that no recent changes had been made to its existing fuel price system, and denied a media report that China would cut the frequency it adjusted prices.

If the 22-day moving average of global crude prices, on which Chinese fuel prices were based, is sharply above the previous price change in late July, China may then announce a bigger price increase after the October 1 National Day holiday to make up for last week's inaction, said Liu Bo of Guojin Securities.

But if crude prices retreat sharply, the government may cancel out a previous increase with a price cut.

China ushered in a "perfected" fuel pricing system at the start of this year to track a basket of global crudes that more or less guaranteed a margin for refiners when crude was under US$80.

Energy price reforms have been long discussed. The natural gas and electricity sectors both remain tightly regulated.

(Shanghai Daily September 1, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Pet Name
China Archives
Related >>
- China oil price is much higher than international market
- SPC buy boost for oil 'price setting'
- Edible oil price hike in the offing
- NDRC: oil price modification pending for further observation
- NDRC official: China to deepen oil price reform
- Jan. 1 'good' for fuel tax, oil price reforms: official
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

September 8-12 Xiamen China Int'l Fair for Investment and Trade
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?