Government and Policy

China considering new oil pricing mechanism

(Xinhua)
Updated: 2010-10-25 19:50

BEIJING - China's top economic planner, the National Development and Reform Commission (NDRC), said Monday that a new and more transparent pricing mechanism for refined oil products could be announced this year.

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Liu Zhenqiu, vice director of the NDRC's price department, made the announcement at a press conference in Beijing, but he did not elaborate on the proposed new mechanism.

The government adopted an oil pricing mechanism at the start of 2009 that allows the NDRC to adjust retail fuel prices when the international crude oil price changes by more than 4 percent over 22 straight work days.

"The reform has played an important role in helping boost refiners' production enthusiasm, ensuring market supply and promoting competition," Liu said.

The government would further improve the pricing mechanism of refined oil products to make it more flexible and better reflect changes in supply and demand, he said.