Development and Reform Commission is studying the adjustment of domestic refined oil pricing mechanism
The source said that Sinopec and PetroChina proposed amendments to the pricing mechanism. The main reason is that the current mechanism is not yet market-oriented. However, it is impossible for China's refined oil pricing to be completely brought to the market.
In May 2009, the “Administrative Measures on Oil Price (Trial)†promulgated by the National Development and Reform Commission stipulated that when the average price of crude oil in the international market changes for more than 4% for 22 consecutive working days, domestic refined oil prices may be adjusted accordingly. Some institutions and experts have suggested that the time interval for adjustment of refined oil prices should be shortened from the current 22 days to about 10 days or even within a week.
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