New oil price reform veers nearer to market forces
0 Comment(s)
Print
E-mail Xinhua, April 1, 2013
"However, the government is gradually loosening its control to let the market to play a bigger role," Shi said, describing this as the "general trend."
On Wednesday, an executive meeting of the State Council chaired by Premier Li Keqiang specified key tasks for the government to accomplish this year, saying the priority of the country's price reform will be on improving the pricing mechanism for resource products.
The government work report released earlier last month also said the country will promote price reform this year and leave room for resource pricing reforms while setting its target for inflation control.
Analysts say the market-oriented reforms for the pricing of coal, natural gas and electricity are also likely to make progress this year.
Further pushing forward price reforms is a pressing task for China, because a poorly functioning pricing mechanism will impede China's drive to steer its economy toward a green and sustainable growth pattern, said Zhu Junsheng, vice president of the China Renewable Energy Society.
Zhu cited the thermal power sector as a good example of what can happen when a pricing mechanism fails to function. Government-led pricing in the sector contributed to severe pollution in past years, as companies lacked incentives to upgrade facilities to reduce pollution.
The energy sector must follow the general direction and requirements of the country's economic restructuring, as it is an integral part of the market economy, said Shi.
"The government should intensify supervision over the pricing of sectors with natural monopolies and gradually loosen market accessions, but give full play to the market in competitive sectors," she said.
Go to Forum >>0 Comment(s)