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On October 18, Department of Pricing of the National Development and Reform Commission of China, domestic petroleum magnates and experts of the oil industry held a meeting in Chengdu in a low tone. They came to discuss how to reform the pricing system of petroleum products in China. A high-rank official advised the focus of the reform should shift from price fluctuations of international oil products to those of international crude oil. He stressed the home prices of oil products are made based on the international fluctuation range coupled with domestic reasonable processing costs and profits. The “Four Auxiliary Mechanisms” made by the National Development and Reform Commission of China would help accelerate the fre- quency of domestic oil product price adjustment. To prevent the national economy from being affected by the rapid oil price hikes worldwide. the plan places high emphasis on the “Four Auxiliary Mechanisms”: a mechanism for oil ewerprises to adjust the interests between the upper reaches and the lower ones; a price-connected mechanism in relevant sectors: a subsidy mechanism for the weak groups like peasants and some public welfare sectors; and a financial adjustment mechanism for the price rise of crude oil. After the pricing reform, the domestic oil price is not likely to drop any further. attracting, in the mean time, new capital into the oil refining and oil product industries.
On October 18, Department of Pricing of the National Development and Reform Commission of China, domestic petroleum magnates and experts of the oil industry held a meeting in Chengdu in a low tone. They came to discuss how to reform the pricing system of petroleum products in China. A high-rank official advised the focus of the reform should shift from price fluctuations of international oil products to those of international crude oil. He stressed the home prices of oil products are made based on the international fluctuation range coupled with domestic reasonable processing costs and profits. The “Four Auxiliary Mechanisms ” made by the National Development and Reform Commission of China would help accelerate the fre- quency of domestic oil product price adjustment. To prevent the national economy from being affected by the rapid oil price hikes the plan places high emphasis on the “Four Auxiliary Mechanisms”: a mechanism for oil ewerprises to adjust the interests betwe en the upper reaches and the lower ones; a price-connected mechanism in the relevant sectors: a subsidy mechanism for the weak groups like peasants and some public welfare sectors; and a financial adjustment mechanism for the price rise of crude oil. , the domestic oil price is not likely to drop any further. attracting, in the mean time, new capital into the oil refining and oil product industries.