Web Exclusive

NDRC evaluates oil pricing mechanism

By Hu Yang (chinadaily.com.cn)
Updated: 2010-08-20 15:37

China's top economic planner has finished reviewing the nation's oil-product pricing mechanism, the 21st Herald reported today, saying there are different opinions within the agency concerning further amendments on the current mechanism.

Related readings:  Oil pricing mechanism may see some tweaks  Sinopec suggests changing oil price adjustment schedule  Transparent pricing mechanism  China to continue oil product pricing reform

China currently adjusts domestic fuel prices when the moving average of the international crude price changes over 4 percent over a period of 22 working days.

The report said one of the differences within the National Development and Reform Commission (NDRC) is the "22 working days" period. Some insist on a shorter period, while others would prefer the period to be unchanged or even longer.

Other issues discussed included the "4 percent" magnitude, and whether the government should adjust domestic oil prices every time the current condition required a price change.