Domestic oil prices to gradually merge with international prices

If there is to be a delay in the alignment of domestic and international oil, how long do you expect this delay to be?

Wang Zhen: My personal view is that we should gradually shorten this time delay until the two entirely converge. It is very important that the pricing mechanism works properly. A market-oriented pricing mechanism will play a big role in pushing forward a rational distribution of resources and energy saving. If prices are gradually straightened out, oil companies will have no reason to blames losses on refining industry policy. The community will no longer have such great expectations of the government in terms of price adjustment. The Chinese government has attached great importance to reforming the oil pricing mechanism. The key here is in opportunities. The consumption of refined oil will have an influence on industrial and agricultural production, transportation and other important industries. The fluctuation of refined oil prices directly influences production and people's lives. A drop in world oil prices would create a rare opportunity for the smooth implementation of a comprehensive reform of refined oil prices.

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