The world oil price has been on a roller coaster ride this year and China's oil and chemical industries have suffered enormous losses due to their high dependence on exports on one hand, and government price controls on the other.

According to insiders Li Yizhong, Minister for Industry and Information Technology, submitted seven suggestions to the State Council to ease the difficulties faced by oil and chemical industries.

1. Adjust the import and export tax rates on oil and chemical products, including a rebate of export tax on high value-added products, and an increase in the tariff on imported refined oil to 5 percent from its present temporary 1 percent.

2. Speed up the reform of the price setting mechanism for oil, gas and chemical products

3. Inject additional funds into oil refiners to reduce their debts; allow Sinopec Group and Petroleum Corp (CNPC) to use windfall tax funds to offset their losses in oil refining

4. To speed up restructuring of these industries

5. To build up the national reserves of refined oil and fertilizer.

6. To provide assistance to businesses to upgrade their technology

7. To advise the oil and chemical industries to accelerate their strategy for going global.

For more details, please read the full story in Chinese. (http://www.eeo.com.cn/Politics/beijing_news/2008/12/18/123985.shtml)

(China.org.cn December 18, 2008)