Latest News:  


New hopes of pricing reform for oil and gas

(Shanghai Daily)

08:14, December 28, 2012

Market pricing would benefit energy giants such as Sinopec Corp, Asia's largest fuel refiner, and PetroChina Co, the country's largest gas importer.

THE new year brings renewed hopes that China will take more serious action on reforming pricing for oil products and natural gas.

The Party Congress last month signaled its intent to move forward on deregulation to link energy prices more directly to supply and demand. That has led many analysts and investors to believe China is likely to start the reforms soon.

Market pricing would benefit energy giants such as Sinopec Corp, Asia's largest fuel refiner, and PetroChina Co, the country's largest gas importer.

There is a bit of deja vu to reform expectations. Energy market participants had similar high hopes for reform at the start of this year, after the National Development and Reform Commission, China's top planning agency, submitted plans to revamp the fuel pricing system to reflect market costs. In reality, however, refiners suffered through the first half of 2012 amid strong global crude oil prices and the inability to pass them on under the centrally controlled pricing system. The companies' bottom lines got some relief from fuel price rises later in the year.

"For us, 2012 was a lesson to be cognizant of the pragmatic approach of Chinese regulator towards refining returns," Credit Suisse analysts David Hewitt and Horace Tse wrote in a note. "With high crude prices and a focus on inflationary pressures in the early part of the year, the refiners were left to record material losses, disappointing those expecting a transformational adjustment to the refined-product pricing mechanism."

【1】 【2】 【3】

We recommend:

Riding on BJ-GZ high-speed railway

The spending of China's rich

More Chinese cities see home price rise

Santa is coming and China takes a lot more notice

Harbin-Dalian high-speed railway starts operation

Nanjing Yangtze Fourth Bridge to open


Leave your comment0 comments

  1. Name


Selections for you

  1. Four warships of navy hold open day to public

  2. Frontier defense soldiers on patrol duty

  3. Winter storm hits eastern U.S.

  4. Stay together forever

  5. Ice fishing event in NE China's Jilin

  6. Top 10 economic events in 2012

  7. Gorgeous Ye Qing's new photo album

  8. Photos of the Day

Most Popular


  1. Time to abandon obsession with theme parks
  2. No grand glory, but plenty to cheer about
  3. Optimism over China's economy surfaces
  4. Internet gaming: 'A winning gamble'
  5. People have right to know what chickens eat
  6. Catchwords in memory in 2012
  7. Why the young Chinese get physically weaker
  8. Why Discover China is popular in the West
  9. The laughter sounds too harsh
  10. Do not confuse Confucious with Santa Claus

What’s happening in China

China sends first oceangoing patrol vessel to South China Sea

  1. Old Chinese ID cards to expire
  2. 12 officials suspended over children deaths
  3. More non-governmental support to help needy
  4. China bans forced confessions in investigations
  5. School bus safety