Latest News:  


More frequent fuel price adjustments considered

(Shanghai Daily)

14:05, March 07, 2013

CHINA is studying options for increasing the frequency of fuel price adjustments as part of plans to reform pricing mechanisms, the top planning official said.

Under the current system, introduced in late 2008, the government can adjust fuel prices if the 22-working day moving average of Brent, Dubai and Indonesia's Cinta crude benchmarks rises or falls more than 4 percent.

The government also considers other factors, including inflation and supply, when adjusting prices.

"The period is too long," Zhang Ping, director of the National Development and Reform Commission (NDRC), which sets energy prices in China, said in Beijing today.

The commission plans to shorten this period and remove the 4 percent trigger point so fuel prices better reflect changes in global crude oil markets, he said.

Drawbacks of the current mechanism were evident when the NDRC raised fuel prices on February 25, its first adjustment this year.

This was to reflect a longer term price change in crude market. However, there had been a retreat in the days leading up to the adjustment.

The same day, pump rates were cut in Taiwan, where CPC Corp, the island's oil company, reviews rates weekly.

This disparity led to outrage among mainland motorists and underscored for many the urgent need for the NDRC to improve its fuel pricing mechanism.

A new mechanism is expected to shorten the 22-working day adjustment period to 10 working days, according to analysts and industry officials.

The new pricing mechanism may be unveiled after the ongoing National People's Congress, according to analysts at Sanford C Bernstein.

ICIS C1 Energy expects the NDRC, while removing the 4 percent cap, still to introduce a limit in fuel price changes, according to a report today.

The mainland raised fuel prices four times and cut them four times last year.

We recommend:

Beihai, a Rising Young Star

China's jumbo jet C919 expected to fly

More loans extended to support agriculture

Direct trade in RMB increases in Thailand

Energy trade surplus for US

China seeks economic transformation

Email|Print|Comments(Editor:HuangBeibei、Liang Jun)

Leave your comment0 comments

  1. Name


Selections for you

  1. Navel landing ships perform military tasks

  2. Newly-recruited female soldiers in training

  3. 83rd Geneva Int'l Motor Show opens

  4. A little man’s struggle for job

  5. Art schools exams in Chinese style

  6. Foxes seek food from oil workers in NE China

  7. Chinese and overseas arts serve and return

  8. Old Shanghai posters in the Minguo period

  9. U.S. enjoys clean energy trade surplus with China

  10. Energy trade surplus for US

Most Popular


  1. Books for youngsters' the fastest-growing genre
  2. Life of the never-touch-a-pan generation
  3. Chinese films ought to tell Chinese stories
  4. Lei Feng spirit never out of date
  5. Call to relax adoption criteria
  6. China has its own Golden Raspberry Awards
  7. Chinese tourists reflect nation's character
  8. Spoiled brats spring from pampering parents
  9. A smile can succeed where a scowl fails
  10. Reducing income inequality an urgent task

What’s happening in China

Donations for sick child star's care arouse mixed reaction

  1. SUV theft baby's body found: Police
  2. Shanghai to move up rich list
  3. Shanghai launches site to apply for scholarships
  4. Explosion in residential building kills 2, injures 11
  5. Nationwide ID data network must be strengthened